Archive for the ‘International Governments’ Category

China puts army on Korea border

Wednesday, October 15th, 2003

I suspect this has more to do with DPRK emigration than anything else…. 

BBC
Rupert Wingfield-Hayes
9/15/2003

The Chinese Government says it has transferred control of its border with North Korea from the police to the People’s Liberation Army.

But it is refusing to confirm media reports that it has also sent 150,000 combat troops to the border area in recent weeks.

A number of Hong Kong newspapers have reported that the extra troops were being deployed to seal off the border, and put pressure on the North Korean Government to end its nuclear weapons programme.

According to China’s foreign ministry, the change in border command is nothing out of the ordinary, and has in fact been planned for years.

But the timing seems more than a coincidence.

In recent months, China has become much more explicit in demanding that North Korea must end its nuclear weapons programme, and Beijing is growing increasingly frustrated by Pyongyang’s intransigence.

Talks hosted by China last month to try and break the deadlock over Pyongyang’s weapons programme got nowhere.

Few now doubt that China is actively preparing for every eventuality, including that of a possible North Korean collapse.

Share

Call for Kaesong investors

Wednesday, October 1st, 2003

From the BBC:

North Korea has unveiled the terms under which foreign investors will be lured to a ground-breaking industrial zone near the tense border with South Korea.

Two South Korean companies – Korean Land and an arm of the Hyundai conglomerate – are developing an international business park in Kaesong, part of a package of cautious economic reforms in the Stalinist country.

So far, more than 1,000 South Korean firms have enquired about setting up shop in Kaesong, where labour costs will be a tiny fraction of those south of the border.

The North Korean Government now promises investors favourable tax rates, but there are still considerable concerns over whether it will allow businesses much economic freedom.

Most of the companies so far interested in Kaesong are in light manufacturing, particularly textiles.

Depending on their line of business, these firms will be taxed at up to 14%, less than half the rate levied in the South.

Pyongyang is, however, especially keen to lure hi-tech firms, which will be subject to a tax rate of just 10%.

Investors will have to pay a number of other smaller levies, and must adhere to a minimum monthly wage of $50.

Such incentives have sparked a flurry of interest in the South, but many companies remain wary.

They will be forced to hire workers through a North Korean state agency whose powers and attitude remain unclear.

And there is still little confidence in the fundamental stability of North Korea, which has turned to economic reform in recent years, but which remains virulently opposed to most forms of foreign influence.

The Kaesong development does, however, seem to be a relatively permanent arrangement.

It forms part of a large-scale construction project in the region, which is just 50 kilometres northwest of Seoul.

Elsewhere the focus is on tourism, especially scenic Mount Kumgang on the country’s east coast, which Hyundai has been trying to develop for five years, with mixed success.

There is also a Unification Park, which will be the venue for reunions of families split by the country’s division.

Most significant are major road and rail developments which mark the first time the two rival countries have re-established transport links since the end of the Korean war in 1953.

Share

The fall and arrest of Mr. Yang

Sunday, September 7th, 2003

UPDATE 2 (2003-9-7): The BBC reports that Mr. Yang has lost his appeal:

A business tycoon once listed as China’s second richest man has lost an appeal against his 18-year sentence for fraud.

Yang Bin, known as China’s flower king, was found guilty in July of a string of economic crimes including bribery and illegal land use.

The High People’s Court of Liaoning province on Sunday also upheld fines against him and his companies totalling 8.3m yuan ($1m), said the official Xinhua news agency.

Yang is one of a number of high-profile businessmen to have fallen foul of the law in China over the last year.

Before his fall from grace, he was one of China’s most flamboyant businessmen, and was named by North Korea to head a free-market experimental zone across from the Chinese border.

Border arrest

A Dutch citizen, he built a business empire growing tulips amid the industrial decay of north-east China and by 2001 had a fortune close to $1bn.

However, much of Yang’s wealth had, it turned out, been based not on flowers but on illegal property development.

In what may have been a last bid to avoid prosecution, he accepted an offer from the North Korean government to run a new free trade zone inside the Stalinist state.

But last October, as he prepared to cross the border, Chinese police moved in and took him away.

UPDATE 1 (2003-7-14): Mr. Yang has been sentenced to 18 years by a Chinese court. According to the BBC:

A business tycoon once listed as the second richest man in China has been sentenced to 18 years in prison for fraud.
Yang Bin, known as China’s flower king, was found guilty of a string of economic crimes including bribery and illegal land use.

He is one of a number of high-profile businessmen to have fallen foul of the law in China in recent months.

Before his fall from grace, Yang Bin was one of China’s most flamboyant businessmen, and was named by North Korea to head a free-market experimental zone across from the Chinese border.

A Dutch citizen, he built a business empire growing tulips amid the industrial decay of north-east China.

By 2001 he was listed as China’s second richest man, with a fortune close to $1bn.

But with fame came suspicion and soon a government investigation.

Much of Yang’s wealth had, it turned out, been based not on flowers but on illegal property development.

False receipts were used to get his company listed on the stock market. As his empire began to crumble around him, Yang made what may have been a last bid to avoid prosecution.

He accepted an offer from the North Korean government to run a new free trade zone inside the Stalinist state.

But last October, as he prepared to cross the border, Chinese police moved in and took him away.

A spokesman for Yang, chairman of Hong Kong-listed Euro-Asia Agricultural (Holdings), said he planned to appeal.

Read the full story here:
China’s ‘orchid king’ gets 18 years
BBC
2003-7-14

ORIGINAL POST (2002-10-4): According to the Washington Post, Mr. Yang has been arrested.

Chinese sources, including journalists, said police detained Yang Bin, a 39 year old multimillionaire and flower mogul, on suspicion of tax evasion in the northern Chinese city of Shenyang.

A Chinese source said that the move did not mean China opposed North Korea’s fledgling efforts to reform its economy.  China, he said, was simply against the choice of Yang Bin to head the effort.

Nonetheless, Chinese economists said Yang’s detention constitutes an embarrassment for Kim Jong Il and could threaten reform efforts.

Within the last few days, Chinese journalists say, China’s Ministry of Propaganda has issued three circulars banning China’s press from in depth coverage of Yang.  Analysts in China say they believe this means Beijing is uncomfortable with his new status in North Korea.

The Sinuiju region draws its inspiration from the special economic zones that china established in the 1980s .

Yang said any foreigner could travel to Sinuiju without a visa as long as they had a a visa to return to China (as of Sept 30).  But those plans hit a roadblock on Thursday when North Korean authorities declined to allow foreign correspondents travel with Yang to the Zone.  Yang’s problems then started snowballing when an impromptu news conference he called to explain the visa restrictions was declared “illegal” by Chinese police.

Yang’s shares have been suspended from the Hong Kong Stock Exchange because the company has not made sufficient disclosures.

Yang has been reticent about how he got the North Korean appointment–one of the stranger events in Pyongyang’s checkered attempts to open to the outside world.  In an interview with a Chinese magazine, he said that he had been “Sharing my agricultural technology with the people of North Korea “for more than a year” and that “my selfless help won the trust of the Korean people.”

Yang struck up a friendship with Kim Jong-il several years ago.  Yang took his corporate jet to Pyongyang and worked hard to cultivate Kim.  Kim traveled to Shenyang to meet Yang.  Yang offered to donate greenhouses to North Korea which is desperate for ways to grow food, and Kim accepted.

Some Chinese economists and officials have privately criticized North Korea’s choice of Yang, saying he is emblematic of a type of Chinese businessman who amasses fortunes making use of connections and legal loopholes.

Yang has said he hoped to turn Sinuiju into a trading and manufacturing and trading hub.  Chinese cources, however, said that so far Yang has been approached only by developers looking to turn the area into a gambling and entertainment enclave for Chinese tourists.  Gambling is illegal in China.

Source:
The Fall of Mr. Yang
Washington Post
2002-10-4
Page A25

Share

US reopens Korean veteran talks

Wednesday, July 9th, 2003

BBC
7/9/2003

North Korean and US officials are to resume talks on recovering the remains of US soldiers still missing from the Korean War.

Negotiators will meet on Thursday in the Thai capital of Bangkok to discuss a schedule for new search operations, a US spokesman said.

Previous talks were suspended last year as tensions between the two nations rose after the US accused North Korea of developing a nuclear weapons programme.

The US search for remains, involving forensic experts, has focused on several key battlefields.

These include the Chongchon River vicinity, north of Pyongyang, and in the Chosin Reservoir area, scene of some of the most savage fighting of the war in the final months of 1950.

More than 8,000 US servicemen are listed as unaccounted for from the Korean War, which ended 50 years ago this month.

‘Humanitarian work’

US officials stressed that the talks would not focus on the subject of North Korea’s alleged weapons programmes, describing it instead as a “separate, stand-alone, humanitarian” issue.

“This has been the US policy in our dealings with all other countries,” US Defense Department spokesman Lieutenant Commander Jeff Davis told the Associated Press news agency.

“And it has enabled us to continue moving ahead in our humanitarian work even if there may be policy difficulties in other areas.”

Since 1996, when North Korea first permitted the US to search for remains of servicemen, around 200 sets of remains have been recovered.

Share

S Koreans charged over summit cash

Wednesday, June 25th, 2003

BBC
6/25/2003

Two top aides to South Korean former President Kim Dae-jung have been charged following an inquiry into a cash for summit scandal which preceded an historic inter-Korean meeting three years ago.

Park Jie-won, Mr Kim’s presidential chief of staff, and Lim Dong-won, the former head of South Korea’s spy agency, were among more than eight people charged as a result of a 70-day probe by independent counsel Song Doo-hwan.

Mr Song’s investigation found that $100m of the $500m transferred by Seoul to North Korea ahead of the 2000 summit was government money.

The inquiry was ordered by incumbent South Korean President, Roh Moo-hyun, after the scandal first surfaced during last year’s presidential election.

Kim Dae-jung has already apologised to the nation for the advance payment to the North, but denied the government itself had made any payments.

Mr Song said that while $400m of the money belonged to Hyundai, and was intended for legitimate business investment in North Korea, $100m was sent by Seoul as “politically motivated government aid”.

He stopped short of saying the government money was a bribe, but said the donation was clearly related to the summit and had been sent secretly through improper channels.

Mr Kim, who left office this February after a five-year tenure, was given the Nobel Peace Prize largely as a result of the historic inter-Korean summit.

He has argued that the money transfers “facilitated peace on the Korean Peninsula”.

But opposition politicians have continued to demand a more thorough enquiry into the matter.

Charges

One of the officials charged in connection with the scandal, former Culture and Tourism Minister Park Jie-won, met North Korean officials in April 2000 to arrange the June summit, according to Mr Song’s inquiry.

During the meeting, Mr Park pledged $100m to Pyongyang, which he later persuaded Hyundai to transfer, Mr Song said.

Lim Dong-won, former director of the National Intelligence Service, is accused of violating laws on foreign exchange transactions.

Chung Mong-hun, the chairman of Hyundai Asan, has also been charged in connection with the falsification of financial documents in order to cover up the payments to Pyongyang.

At least five others have been charged in connection with the case – some of whom could face up to five years in jail, according to the Associated Press news agency.

Mr Roh has vetoed a call by the South Korean opposition that the probe be extended to investigate the role of former President Kim Dae-jung himself.

Share

N Korea ‘spy ship’ a hit with tourists

Monday, June 2nd, 2003

BBC
6/2/2003

Video of the ship’s sinking on Youtube: 1, 2

Tourists in Tokyo are flocking to visit the salvaged remains of a suspected North Korean spy ship, sunk after a gun battle with the Japanese coast guard in December 2001.

The unusual tourist attraction in the fashionable O-Daiba area attracted more than 20,000 people in its first weekend on display to the public.

Exhibits included an underwater scooter and a portable missile launcher, as well as the bullet-scarred hull.

The spy ship was put on display by the coastguard in order to raise awareness of the threat from North Korea, whose alleged nuclear programme has severely strained its foreign relations with Japan in recent months.

Some visitors said that the exhibit confirmed their view that Tokyo was too soft on Pyongyang.

“Japan is just too wimpy,” 60-year-old Goro Masuda told Reuters news agency. “We must take a stronger line.”

But others thought that the Japanese coastguard was trying to manipulate the public.

“I think the coast guard had its own reasons for wanting to show us this,” said Akihiko Nishimura.

The ship was disguised as a Chinese fishing boat when it was intercepted by the Japanese coastguard.

It was sank after a six-hour chase and fire fight with Japanese patrol ships.

The vessel, which was said to have failed to heed Japanese warning shots and an order to stop, fled in the direction of China before it sank.

After salvaging the wreckage, coastguards found a small button labelled “self-destruct” on board, which they believed was used by the crew to scupper the boat rather than be captured.

Ten bodies were recovered from the ship, although officials said that the array of equipment on the ship meant that there were probably several more North Koreans on board.

Share

US congressmen visit N Korea

Friday, May 30th, 2003

BBC
5/30/2003

Six US congressmen have begun a visit to North Korea, hoping to ease tensions in the crisis over the North’s suspected nuclear weapons programmes.

They are the first US officials to be invited to the North since the nuclear crisis erupted in October, but they have made clear they are not travelling as envoys of the US Government.

The congressmen describe their visit as a “fact finding mission”.

They have asked for a tour of the controversial nuclear complex at Yongbyon which has been at the centre of the nuclear stand-off, but it is not clear whether this will take place.

The North Korean authorities announced that they were reactivating the plant following a US decision to suspend oil shipments to the country over suspicions that a secret uranium enrichment programme was underway.

The congressmen are expected to meet the chairman of the North Korean parliament, Kim Yong Nam, and visit various institutions including a school, a factory and a church.

Territorial waters dispute

The delegation leader, Curt Weldon, said they would be making clear that the world was ready to help economically and provide humanitarian help, but only if the North Koreans were prepared to completely close down their nuclear programme.

The visit follows another warning from North Korea to the South over the alleged violation of territorial waters.

A statement on the official news agency said such provocative acts could lead to “irrevocable serious consequences”.

The agency said four South Korean navy boats sailed into Northern waters on Thursday, following incursions by 16 warships on Wednesday and three on Tuesday.

South Korea has denied the accusations and said that fishing boats from the North had violated the sea border on three successive days this week.

Share

DPRK embassy opens in London

Wednesday, April 30th, 2003

From the BBC:

Foreign minister Choe Su-hon is attending the opening ceremony, and he will meet his British counterpart Bill Rammell, who will press for more information about the secretive nation’s nuclear programme.

The isolated Stalinist state’s interests will be represented from the house of its charge d’affaires, Ri Tae-gun, in Ealing, west London.

Britain initiated diplomatic relations with North Korea in December 2000, after five decades of mutual enmity after the Korean war.

A British embassy was opened in the communist state in July 2001, while three North Korean officials were accredited to an office in London.

The leafy suburb of Ealing is far from the opulence of Kensington and Mayfair where embassies are traditionally located.

But North Korean diplomats will benefit from easy access to Heathrow, extensive green spaces and good public transport links.

Officials are said to be looking for a permanent site in central London.

In line with the secretive atmosphere in North Korea, an official at the embassy refused to discuss Wednesday’s ceremony “for security reasons”.

Share

DPRK acts against sars

Saturday, April 26th, 2003

from the BBC:

North Korea announces tough restrictions in a bid to prevent the spread of the deadly respiratory disease Sars.

It has introduced strict quarantine measures and suspended a shipping service to Japan as well as a joint tourism project with South Korea.

Public health officials have outlined some of the steps being taken on state TV.

Emergency anti-epidemic centres have been set up at national and local level and quarantine officers are implementing stringent checks at all points of entry into the country, said Choe Ung-chin, head of the State Hygiene Inspection Institute at the North Korean Public Health Ministry.

Travellers bear cost

 

North Korea’s proximity to China, where the outbreak was first recorded, is the cause of particular concern.

“Most North Koreans who make business trips abroad and foreigners who enter our country do so via China,” Han Kyong-ho, another senior health official, explained.

“When the international train that runs from Sinuiju [border station] to Pyongyang enters the station, all travellers are thoroughly checked to see if they have Sars symptoms such as fever and dry coughs.

“Furthermore, all travellers coming into the DPRK from the places of origin of Sars are strictly isolated for 10 days.”

Mr Han said that Sars germs could be present in travellers’ luggage or in insects such as cockroaches.

“Therefore, every one of the travellers’ possessions is thoroughly sterilised, and medical inspections of all workers at the station who have had contact with people who have travelled abroad are being carried out in detail,” he said.

At Pyongyang international airport, incoming travellers who display any Sars symptoms are hospitalised while those who do not are quarantined for 10 days at specially designated hotels.

Russia’s Itar-Tass news agency reports that the cost of such unforeseen stopovers – 100 euros a night exclusive of meals – will be borne by foreign travellers themselves.

Services suspended

 

North Korea has also suspended the Man Gyong Bong-92 shipping service to Niigata Port.

Japan’s Kyodo news agency said the ship was slated to make three port calls to Japan in May, but two have already been cancelled.

The North Korean Government is also reported to have sent emails to thousands of pro-Pyongyang ethnic Koreans in Japan urging them not to visit their homeland for the time being.

And South Korea’s Hyundai Asan Corp was “stunned” to learn that North Korea had suspended a joint North-South tourism project it operates over Sars fears, South Korea’s Yonhap news agency reports.

The South Korean firm has run loss-making cruises for tourists to the North’s scenic Mount Kumgang since 1998 in a symbolic project to promote inter-Korean reconciliation.

The suspension of the tours heightens the possibility that all of Hyundai’s inter-Korean projects may come to a “screeching halt”, at a time when the company has been campaigning hard to revitalize the business, the agency adds.

Share

Infiltrators of North Korea: Tiny Radios

Monday, March 3rd, 2003

From the New York Times
James Brooke
March 3, 2003 

As the Pentagon studies moving tons of military hardware within striking range of North Korea, some say the weapon most feared by the Stalinist government there may be a disposable radio the size of a cigarette pack.

“Little throwaway radios, you listen, you throw away — the smaller the better, the more disposable, the better,” said Pastor Douglas E. Shin, a Korean-American human rights activist who advocates smuggling thousands of tiny radios capable of receiving foreign broadcasts into the North.

The radio smuggling is part of a growing public and private effort, including foreign radio broadcasts, to crack an information monopoly in the North that has helped keep the Kim family in power for nearly 60 years. So tight is the information blackout that defectors report that they believed that their country — one of the world’s poorest — was wealthier than South Korea and that the United States donated rice as a form of tribute to the powerful Communist state.

In January, in a bid to emulate the experience of East Europeans in the cold war, Radio Free Asia and Voice of America doubled their hours of Korean-language broadcasting into North Korea. In February, Radio Free Asia joined Voice of America in broadcasting into North Korea on medium wave, a bandwidth accessible with cheap AM radios.

But the first challenge, skeptics note, is that few people in the North have the radios — or the courage — to listen to foreign broadcasts, something that advocates of the tiny disposable radio say they are determined to change.

Under threat of severe penalties, the vast majority of North Korea’s 22 million people are not allowed any contact with the outside world — letters, telephone calls, travel, radio or television programs.

All citizens are required to register their radios with the local police. On registration, foreign-made radios are tuned to the state radio frequency, soldered into place, and sealed. The police then make unannounced inspections of households with foreign-made radios to verify that they have not been tampered with.

“A lot of people in the White House believe the Iron Curtain came down because U.S. government radio supplied the information that created the Velvet Revolution,” said an American diplomat here, referring to Czechoslovakia’s revolt against Communism. “But in the case of North Korea, is it the sound of one hand clapping? Is it getting in there?”

Advocates of smuggling radios into the North, mostly human rights and Christian church groups, say their effort is aimed at ensuring that someone is indeed listening. Even if only a tiny elite tune in, they say, the effect can be powerful.

“The populace will suffer a kind of psychological collapse when they learn what has been done to them and what the real world is really like,” predicted Radek Sikorski, who grew up listening to Voice of America and Radio Free Europe in communist Poland and now works at the American Enterprise Institute.

“Control of information,” he said, “is absolutely crucial to the survival of this regime because the system is based on lies.”

In a recent manifesto , Mr. Sikorski joined 16 American policy makers in demanding that the Bush administration tie talks with North Korea over its nuclear weapons program to an opening on human rights, including freer information.

Citing the impact of the Helsinki Agreement of 1975 in undermining the Soviet Union and its East European allies, the group called for “significantly expanding the current, scandalously inadequate Korean-language Radio Free Asia broadcasts.”

Already, in a small office rented on the seventh floor of a Seoul newspaper building, Radio Free Asia broadcasters try to bring to North Koreans four hours of news a day.

“North Korean people are not told the truth, so somehow we have to be surrogates, to tell them what is going on,” said Ahn Jae Hoon, who was born in Pyongyang, North Korea, and became director of the Korean branch of Radio Free Asia in 1997, after 26 years at The Washington Post.

The reports are clearly aimed at undermining the leadership of Kim Jong Il. Some broadcasts report on food and power shortages, others on the image of North Korea as isolated and weak abroad. Still other reports discuss military dissatisfaction and coup attempts in the 1990’s, and the fact that Mr. Kim insists that all soldiers be disarmed before he visits a military unit.

The radio also gives practical information for defectors — how to contact missionary groups in northern China, how to dress and behave to escape arrest and deportation to North Korea.

In contrast, under Seoul’s “sunshine policy” of reconciliation, South Korea’s state-owned Korean Broadcasting Service increasingly airs programs intended not to provoke the North and to promote peaceful coexistence on the peninsula.

On Saturday at a national park near Kosung, North Korea, two park guides spoke dismissively of foreign broadcasts. “Why would we want to listen to radio from the South? No one is stopping us from listening, but we don’t want to anyway,” said Kim Dong Chul, 31. “The music is not our style and the news is not for us. It’s for the people in Seoul.” Another guide, a 26-year-old man who declined to be identified, said, “I don’t have enough time in a day to listen to our radio, and then to listen to radio meant for other people.”

The guides are largely chosen for their political loyalties, because they come in contact with large numbers of South Korean tourists.

Backers of foreign broadcasts, however, say more and more North Koreans are finding ways to tune in.

As trade with China increases and radio prices fall, some North Koreans now buy two radios, but register only one with the police, defectors say. In a country wracked by power shortages, government jamming is spotty. Also, some North Koreans dare to tinker with state-supplied radios, defectors add.

Still, for now, foreign broadcasting is largely limited to North Korea’s elite.

In 1999, Mr. Ahn said, a survey commissioned by Radio Free Asia found that one of 12 “elite” defectors polled had listened to Radio Free Asia. A similar survey in 2001 found that the proportion had risen to 6 of 12.

Share