DPRK finance chief sacked over currency revaluation

February 3rd, 2010

According to the Choson Ilbo:

The North Korean regime apparently sacked the Workers’ Party’s Finance Director Pak Nam-gi, letting him take the fall for the failed currency reform late last year. Pak was appointed finance director in July 2007 to oversee North Korea’s economic policies and has spent the past few years trying to root out a nascent market economy.

“Right now, North Korean officials are busy blaming each other for the failed currency reform and Pak, who spearheaded the revaluation, is believed to have been sacked,” said a diplomatic source in Beijing. “Markets have come to a grinding halt following the currency revaluation and prices have soared,” the source said. It seems North Korea hoped to stabilize prices through the currency reform and then credit the achievement to Kim Jong-il’s third son and heir apparent Jong-un to consolidate his grip on power, but this flopped, the source added.

Some North Korea watchers in China predict that the regime may perform a U-turn back to timid market reforms now that Pak, who led the crusade against capitalism, has been fired. One North Korea expert in Beijing said, “There is a strong possibility that high-ranking North Korean officials who led the drive to crush market forces since 2004 will be removed from office, while policies will shift toward market reforms starting in the second half of this year.”

Meanwhile, the new North Korean won is still plummeting against the U.S. dollar. North Korea valued the new currency to 98 won per dollar after the old won weakened to 3,500. But the new won has plunged since last month and is now being traded at between 300 and 500 won per dollar, according to people who trade goods with North Koreans.

According to the Daily NK:

In the tradition of dictatorial regimes worldwide, scapegoats have apparently also been chosen. South Korea’s Chosun Ilbo today claimed that Park Nam Ki, Director of the Planning and Financial Department of the Central Committee, has taken responsibility for the failed redenomination, which initiated a period of hyper-inflation, and been dismissed.

According to the report, Park was appointed to the top economic position in the North Korean government in July, 2005, where he began to pull up the green shoots of spontaneous market economy.

If the news is confirmed, Park will be following in the undesirable footsteps of Ministry of Agriculture head Seo Gwan Hee and Premier Park Bong Ju.

Seo was executed for his role in the 1990s famine. According to defector testimony, Kim Jong Il shifted responsibility for the famine onto him and had him publicly executed in 1997.

Meanwhile, Park Bong Ju became the Premier of the North Korean Cabinet in 2003, the year after the adoption of the July 1st Economic Management Reform Measure, and was responsible for introducing revised market economic elements according to the July 1st Measure. However, results were not sufficient and he was sent to manage the Suncheon Vinylon Complex in South Pyongan Province. 

Lets hope that the jangmadang come back with a vengeance. 

Read the full articles here:
N.Korean Finance Chief Sacked Over Currency Debacle
Choson Ilbo
2/3/2010

Read the full story here:
Ban on Markets lifted
Daily NK
Jung Kwon Ho
2/3/2010

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Fighting in the Streets

February 2nd, 2010

Daily NK
Park Sung Kook
2/2/2010

There has been an explosion in the number of casualties resulting from popular resentment at harsh regulation of market activities by the security apparatus across North Korea, according to various Daily NK sources.

For instance, in Pyongsung, North Pyongan Province, normally one of the key distribution centers in North Korea, there have been several incidents of agents from the People’s Safety Agency (PSA), the organization charged with cracking down on the smuggling of food and other officially “immoral” acts, being attacked by unidentified assailants.

A Daily NK source reported on Monday, “A group of agents who had just finished doing the rounds of the jangmadang and alley markets in Naengcheon-dong, Haksu-dong, and Cheongok-ri in Pyongsung were attacked by a number of people, who assaulted them and immediately ran away. As a result, PSA officials are feeling very tense these days.”

Commenting privately on these incidents, some people savor them as acts of revenge, but others are worried about the situation, according to The Daily NK’s sources.

There have been more examples unearthed in recent days, too. For instance, North Korea Intellectuals Solidarity (NKIS), a Seoul-based defector group, recently received news that “a fight broke out between agents of the PSA, who monitor the Hyesan jangmadang, and some residents. As the fight turned serious, one resident snatched an agent’s gun and fired randomly into the crowd. One agent, Choe, is in a critical condition.”

According to NKIS, the fight began after the PSA agents beat up a trader who was trying to avoid the crackdown, and that made other residents angry, so they attacked the agents in return. As the fight grew more serious, agents threatened residents, but this only added fuel to the flames.

Finally, a Daily NK source from North Hamkyung Province released one other incident: Cho, who used to work for the Prosecutions Department of the National Security Agency in the region, was apparently killed by a Chongjin Steel Mill worker called Jeung Hyun Deuk.

The source explained, “Jeung’s father, the chief of a foreign currency-generating company, was interrogated last July on suspicion of embezzling enormous amounts of property and foreign currency, and in January was sentenced to life in prison. However, a few days after being imprisoned, he died. Thereafter, Jeung held a grudge against his father’s interrogator, Cho, and eventually killed him.”

The source concluded, “Traders and residents have lost their property due to the redenomination and are pretty much being treated as criminals as a result of the NSA and PSA’s ‘50-Day Battle.’ Therefore, people are taking revenge on agents, since they feel so desperate that, regardless of their actions, they will die. As a result, social unrest is becoming more serious.”

On January 2, the National Defense Commission released an order entitled “On completely sweeping away hostile factions who attempt to demolish our Republic from the inside,” initiating the “50-Day Battle” crackdown by the PSA and NSA in every city, county, and province which was referred to by the North Hamkyung Province source.

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US intelligence chief: North Korea military crumbling

February 2nd, 2010

According to the AP (Via Boston Herald):

President Barack Obama’s top intelligence official said Tuesday that North Korea relies on its nuclear weapons program because of a crumbling military that cannot compete with South Korea.

Director of National Intelligence Dennis Blair described in testimony before the U.S. Congress a North Korean army that struggles with aging weapons, poorly trained, out-of-shape soldiers, inflexible leaders, corruption, low morale and problems with command and control.

North Korea, Blair said, has little chance of reversing a huge gap in military capabilities with South Korea and so “relies on its nuclear program to deter external attacks on the state and to its regime.”

Officials from South Korea, the U.S., Japan, Russia and China have been working to get North Korea back to nuclear disarmament talks after Pyongyang walked away from the negotiations last year. For more than a decade, the North has gained energy and aid concessions from the talks and then backed away from nuclear agreements.

Blair said the United States does not know whether the North had made nuclear weapons but that it has that capability. He said that while a 2006 nuclear test was a “partial failure,” the May test of last year was more successful.

Blair said North Korea has shipped missiles to Iran and Pakistan and helped Syria build a nuclear reactor.

The North is thought to have enough weaponized plutonium for at least half a dozen atomic bombs. North Korea argues that it was compelled to develop nuclear weapons to cope with a military threat from the United States, which has about 28,500 troops in the South.

Blair said North Korean leader Kim Jong Il wants recognition of his country as a nuclear weapons power, something he said the United States will not do.

Dennis Blair’s Annual Threat Assesment of the US Intelligence Commuity can be read here. Here is what it had to say about the DPRK:

North Korean WMD and Missile Programs

Pyongyang’s nuclear weapons and missile programs pose a serious threat to the security environment in East Asia. North Korea’s export of ballistic missiles and associated materials to several countries including Iran and Pakistan, and its assistance to Syria in the construction of a nuclear reactor, exposed in 2007, illustrate the reach of the North’s proliferation activities. Despite the Six-Party October 3, 2007 Second Phase Actions agreement in which North Korea reaffirmed its commitment not to transfer nuclear materials, technology, or know-how we remain alert to the possibility North Korea could again export nuclear technology.

The North’s October 2006 nuclear test was consistent with our longstanding assessment that it had produced a nuclear device, although we judge the test itself to have been a partial failure based on its less-than-one-kiloton TNT equivalent yield. The North’s probable nuclear test in May 2009 supports its claim that it has been seeking to develop weapons, and with a yield of roughly a few kilotons TNT equivalent, was apparently more successful than the 2006 test. We judge North Korea has tested two nuclear devices, and while we do not know whether the North has produced nuclear weapons, we assess it has the capability to do so. It remains our policy that we will not accept North Korea as a nuclear weapons state, and we assess that other countries in the region remain committed to the denuclearization of North Korea as has been reflected in the Six Party Talks.

After denying a highly enriched uranium program since 2003, North Korea announced in April 2009 that it was developing uranium enrichment capability to produce fuel for a planned light water reactor (such reactors use low enriched uranium); in September it claimed its enrichment research had “entered into the completion phase”. The exact intent of these announcements is unclear, and they do not speak definitively to the technical status of the uranium enrichment program. The Intelligence Community continues to assess with high confidence North Korea has pursued a uranium enrichment capability in the past, which we assess was for weapons.

Pyongyang’s Conventional Capabilities. Before I turn the North Korean nuclear issue, I want to say a few words regarding the conventional capabilities of the Korea People’s Army (KPA). The KPA’s capabilities are limited by an aging weapons inventory, low production of military combat systems, deteriorating physical condition of soldiers, reduced training, and increasing diversion of the military to infrastructure support. Inflexible leadership, corruption, low morale, obsolescent weapons, a weak logistical system, and problems with command and control also constrain the KPA capabilities and readiness.

Because the conventional military capabilities gap between North and South Korea has become so overwhelmingly great and prospects for reversal of this gap so remote, Pyongyang relies on its nuclear program to deter external attacks on the state and to its regime. Although there are other reasons for the North to pursue its nuclear program, redressing conventional weaknesses is a major factor and one that Kim and his likely successors will not easily dismiss. Six Party Talks and Denuclearization. In addition to the TD-2 missile launch of April 2009 and the probable nuclear test of May 2009, Pyongyang’s reprocessing of fuel rods removed from its reactor as part of the disablement process appears designed to enhance its nuclear deterrent and reset the terms of any return to the negotiating table. Moreover, Pyongyang knows that its pursuit of a uranium enrichment capability has returned that issue to the agenda for any nuclear negotiations. The North has long been aware of US suspicions of a highly enriched uranium program.

We judge Kim Jong-Il seeks recognition of North Korea as a nuclear weapons power by the US and the international community. Pyongyang’s intent in pursuing dialogue at this time is to take advantage of what it perceives as an enhanced negotiating position, having demonstrated its nuclear and missile capabilities.

North Korea and Venezuela possess more limited intelligence capabilities focused primarily on regional threats and supporting the ruling regime. North Korea continues to collect information on US technologies and capabilities. Venezuela’s services are working to counter US influence in Latin America by supporting leftist governments and insurgent groups.

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Kim Doubles His Visits to North Korea’s Factories

February 2nd, 2010

According to Bloomberg:

North Korean leader Kim Jong Il has doubled the number of trips he makes to factories and power stations, signaling his regime’s growing efforts to prop up a failing economy hit by United Nations sanctions.

Half of the 20 visits Kim made in January were to economic projects, more than double the four economy-related trips he made a year earlier, according to South Korea’s Unification Ministry. Kim made a total of 13 outings in January 2009.

“It clearly shows how Kim Jong Il wants to show his people his eagerness to overcome economic difficulties,” said Kim Yong Hyun, professor of North Korean studies at Dongguk University in Seoul. “He wants to tell them the leader himself will be at the forefront of improving their livelihoods, which have obviously got worse.”

Kim, 68, braved temperatures of minus 30 degrees Celsius (minus 22 degrees Fahrenheit) to tour a power station under construction in Huichon, North Korea’s official Korean Central News Agency said on Jan. 3 in reporting his first trip of the year. He visited a flour-processing factory in Pyongyang and ordered that machinery be modernized to increase production of bread, biscuits and noodles, KCNA said Jan. 23.

Kim’s “robust” activities suggest his health is not in critical condition, Unification Minister Hyun In Taek told reporters today in Seoul. Kim reportedly suffered a stroke in 2008, raising speculation last year that he may transfer power to one of his sons.

“We believe he is healthy enough to handle daily affairs,” Hyun said. “We are not concerned about his health.”

My friend Mike Madden did a pretty thorough analysis of Kim Jong il’s Jan 2010 actvities which is a bit more clear. Read it here.

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After Hours: Pyongyang

February 2nd, 2010

I do not usually enjoy reading about people’s visits to the DPRK, but I actually learned a few details from this one.  According to the Wall Street Journal:

For all that, Pyongyang doesn’t actually shut down when the sun sets. To serve its trickle of visitors, the city offers its own version of nightlife. Besides foreign envoys shuttling in for nuclear discussions and businesspeople looking to make deals, about 2,000 Western tourists come to Pyongyang each year, many, like me, to attend the famous, stadium-size show called Arirang. It’s a spectacle of mass gymnastics, dance, military marching and incredible animated pictures created by thousands of people flipping colored cards.

The number of visitors could edge up. According to Koryo Tours, a Beijing-based agency specializing in trips to North Korea, the government has notified it that more Americans will be let in during the non-Arirang season (the show generally runs from August to October).

For tourists, the days are filled with sights that have what ruler Kim Jong Il calls “high ideological content.” (A government-supplied guide and minder comes along, day and night.) High on the list is the Mansudae Grand Monument, boasting a massive statue of the country’s late founder, Kim Il Sung, where visitors lay flowers and line up to bow in an orderly fashion. Another must-see is the USS Pueblo, a U.S. Navy intelligence ship captured off the coast of North Korea in 1968; conducting the tour the day we visited was an elderly man dressed in navy whites who was one of the sailors in the original boarding party. And then there’s the underground train system, with its mosaics of peasants revolting and huge chandeliers meant to look like stars.

But there’s also the unexpected, like the Pyolmuri Teahouse, a Western-style cafe whose name translates roughly as “constellation of the stars.” Opened in 2005 with the help of the nonprofit Adventist Development and Relief Agency, the cafe — equipped, as it proudly points out, with German-made ovens and Italian pasta-making machines — offers a tasty apple pie, a surprisingly decent cappuccino and a great chance to people-watch. Egyptian telecommuncations provider Orascom brought mobile technology to North Korea last year, and now demurely dressed teenage girls are accessorizing their hanboks, or traditional Korean dresses, with platform shoes and colorful, decorative, straps on their cellphones. (We tourists had surrendered our phones at the airport, along with our passports; they were returned just before we boarded the return flight.)

As evening approaches, take a stroll (minder in tow) along the deserted embankment of the Taedong River to Kim Il Sung Square. From this vantage point, you can photograph some picture-postcard views while it’s still light. An ideal place to watch the sunset is from the Tower of the Juche Idea, named for the country’s official ideology, a word typically translated as “self-reliance.” The 170-meter tower, built on the occasion of Kim Il Sung’s 70th birthday, is said to contain one white stone block for each day of his life to that point. (He died in 1994, at the age of 82, and while his son is now ruler, the elder Kim is “eternal president.”)

From the top there’s a panoramic view over the capital out to the surrounding mountains. The lack of cars on the roads — vehicles aren’t freely available for purchase — and scarcity of heavy industry means the air is remarkably clear.

Then it’s time to think about where to have dinner. Don’t dawdle; most Pyongyang eateries generally close by 9 p.m. The choices range quite widely, from hot pot at Chongryu Hot Pot restaurant to roast duck at Pyongyang Duck Barbeque Restaurant No. 1to Macanese fare such as egg tarts at the imaginatively named Macau Restaurant.

Whatever you pick, forget dining by candlelight. Here, it’s more likely to be by flashlight. On my first night, just as my tour group was tucking into a typical Korean meal of naengmyon (cold noodles) and bulgogi (barbecued beef) at Mangyongdae KITC restaurant, the lights went out. But the waitresses have come to expect power outages, and before we knew it they were coming around with huge flashlights, one for each table. The room lights still hadn’t come back on by the time we left about an hour later.

Checking out the city’s after-dinner scene is easy: There’s one nightclub and one casino, both located in the same place, the 1,001-room Yanggakdo Hotel, one of about a dozen hotels where foreigners are allowed to stay. (All the tourist hotels do offer some evening activities — like a karaoke bar — but the Yanggakdo is the place to be.) You won’t see any locals here; the entertainment venues are off limits to North Korean citizens.

Start at the aptly named Revolving Restaurant, also known as the Swivel Restaurant, on the 47th floor. It has all the glamour of a 1980s airport lounge, but still attracts businesspeople and Russian exchange students. Grab a seat by the window and admire the lack of city lights as you circle around. Order a serving of soju. Traditionally made from rice, although sometimes also from acorns, it’s the national liquor.

Less-adventurous travelers could sample some of the country’s homegrown beer. The best-known brands are Ryongsong, Ponghak and Taedonggang. Taedonggang, which last year was bizarrely the subject of an advertisement on state TV, is made using equipment that once produced the likes of Brown’s Bitter and Mann’s Best Ale in Trowbridge, England. North Korea bought the shut-down brewery from its U.K. owner and had it dismantled and shipped over in 2000. The restaurant stays open until 1 a.m. or 2 a.m, or when the last customer leaves.

Sufficiently mellowed, head for the nightclub on the lower ground floor. You can groove to the beat of familiar pop tunes from the ’70s and ’80s (was that the Bee Gees'[nbsp ]”Stayin’ Alive,” or too much soju?) until about 3:30 a.m. if there’s enough business; otherwise the staff close the doors at about 1:30 a.m.

If you’re still not ready to call it a night and you’re feeling lucky, pop next door to the Egypt Palace casino. Replete with slot machines and tables for card games including blackjack, the casino is generally open until 4 a.m. But if you aren’t staying in the hotel, how long you can play depends on what kind of deal you can strike with your minder.

After that, there is only the 7 a.m. “workers’ siren,” a citywide wake-up call. It might serve to tell you whether you had too much soju.

On your last day in Pyongyang, by the way, brace yourself for one final, unexpected spending opportunity, befitting a state eager for hard currency. We’d already experienced one big earner, the shop selling souvenir stamps (such as an envelope bearing a Mona Lisa stamp, postmarked on the day of issue, about $7) and hand-painted propaganda posters (such as one showing flying pens attacking former U.S. President Richard Nixon). Now some tourism officials rushed onto our airport-bound bus with something more modern: videos of our three-day stay, going for just under $30. I couldn’t resist.

Courtesy of the advertising department of Korea International Travel Co., the 45-minute video compact disk features me and my 24 traveling companions as we played tourist, drinking beer at lunch and riding the escalators of the underground-train stations. These scenes are interspersed with footage of 80,000 performers at the Arirang mass games, and the whole thing is set to a rousing soundtrack mixing modernized folk songs, swelling orchestral passages and the worst elevator music I’ve ever heard.

Thankfully, there is no record of my night out. At least some things that happen in Pyongyang, stay in Pyongyang.

Couple of extra notes:

1. The Pyolmuri Cafe is the first place in Pyongyang to offer pizza.  They were delivering to the Koryo Hotel before the much publicized Italian Food Restaurant opened on Kwangbok Street.

2. Were is the Macao Restaurant?  Is that in the Yangakdo Hotel?

3. Where is the Mangyongday KITC restaurant?

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Primer on the Tumen Area Development Project

February 1st, 2010

Northeast Asia Matters posted a very helpful background paper on the Tumen Area Economic Development Project. According to Northeast Asia Matters:

Many in Northeast Asia wish to see the Tumen Basin develop into a place for economic cooperation and competition. One such plan is the Greater Tumen Initiative (GTI), formerly known as Tumen River Area Development Project (TRADP), being carried out under the auspices of the United Nations Development Programme (UNDP). The 20-year 80 billion USD plan calls for the creation of port facilities and transportation infrastructure in the region to support a multinational trading hub. Countries participating in the GTI are China, Mongolia, North Korea, Russia and South Korea.

The goal of GTI is to make the area into a free economic zone for trade to prosper and attract investment into the area. For China, the project would give traders in Northeast China easier access to major international ports without having to circumnavigate the Korean Peninsula and thus stimulating growth in China’s northeast rustbelt. For Russia, the project would give the ability to better exploit resources in Siberia and allow easier access to North Korea’s resource-rich hinterland; the area just to the south of the Tumen contains reserves of oil, minerals, coal, timber, and abundant farmland.

Development of the Tumen River area and North Korea’s participation in this project means inflow of hard foreign currency, improvements in infrastructure, and possible increase in industrial capacity. North Korea, with its bleak economy, therefore, will most likely continue to support the development of Tumen River area and increase its future involvement in the project as it seeks to break the economic isolation and hardship it has suffered since the collapse of most of its communist allies and the implementation of international sanctions.

Read the full paper here.

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Kim Jong-il admits being ‘heartbroken’ over North Korean diet

February 1st, 2010

According to the Telegraph:

Rodong Sinmun, the official newspaper of the ruling Communist Party, said Kim’s immediate ambition is to end his people’s dependence on corn for subsistence and to feed them rice and wheat products instead.

“I’m the most heartbroken by the fact that our people are still living on corn,” he was quoted as saying. “What I must do now is to feed them white rice, bread and noodles generously.”

The paper did not disclose when or where Kim’s remarks were made or how he intended to improve the diet of North Koreans, who have for years suffered food shortages and even starvation.

Kim also urged North Koreans to keep a vow made to his father, the late president Kim Il-Sung, to build a nation whose people do not even eat corn.

Last month Kim described “white rice and meat soups” as a long-cherished dream for North Koreans while admitting to failing to deliver an acceptable standard of living for the communist nation’s people.

North Korea has suffered severe food shortages since a famine in the 1990s killed hundreds of thousands people. At the time it was reported that parts of the population had resorted to eating grass.

A shock currency revaluation on Nov 30 reportedly played havoc on distribution networks, aggravating food shortages and sparking inflation.

Read the full article below:
Kim Jong-il admits being ‘heartbroken’ over diet of North Koreans
Telegraph
2/1/2010

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DPRK scholar admits currency reform goal was expanded public finances

January 31st, 2010

Institute for Far Eastern Studies (IFES)
NK Brief No.10-01-29-1
2010-01-29   

The director of the (North) Korea Institute of Social Sciences has publically stated that the shocking currency reforms announced last November were aimed at filling the state’s public finance coffers.

In an interview for the Choson Sinbo, a newspaper distributed by the pro-North ‘General Association of Korean Residents in Japan,’ director Kim Cheol Jun revealed, “[last year’s] currency exchange program in [North Korea] was effectively carried out…through the currency exchange, socialist economic management principles could be better realized and a public finance foundation was prepared on which leaping advancements in the lives of the people will be achieved.”

Many experts in South Korea and abroad had speculated that the North’s objective in revamping its currency was to boost public coffers, but this was the first time that anyone from North Korea had publicly alluded to such goal. Director Kim stated that last year was a year ‘carved into history’ as the year in which the nation was turned around toward the realization of the goals set for 2012, noting that new seeds had been developed to boost crop yields, and that double- and triple-cropping as well as improved potato and bean crops had been accomplished.

Director Kim also stated that a decisive turn-around had been made in resolving food shortage problems, noting the successful development of Lyosell as one example of improved production in North Korea. Lyosell is a silk-like material made from wood pulp transformed into cellulose, and is softer and more hygroscopic than cotton, yet almost as strong as polyester.

Director Kim added that last year also saw the completion of the Yeoungwon Powerplant, the Yeaseong River No. 1 Youth Powerplant, and the Keumya River Powerplant, as well as the installation of Computer Numerical Control (CNC) systems in the Taean Heavy Machinery Complex, the Cheollima Steel Complex, and the Hyecheong Construction Machinery Factory.

Following the currency reform, there was a total lack of policy to stabilize the lives of the North Korean people, and the ban on foreign currency, closing of markets and other control measures only pushed residents to the brink. On December 28, North Korean authorities released a memorandum completely banning the use of foreign currency, and since the beginning of the new year, markets throughout the country have been closed, causing people in the North to turn to barter in order to obtain food. However, the schedule for the closing of markets varies by region, and the state authorities have been unable to enforce state-set pricing as the government has been faced with more than a little resistance to the currency reforms.

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North Korea wants to revive search for US MIAs

January 31st, 2010

Michael Rank

I posted last year about a British Korean War pilot who is buried in North Korea. This got me interested in MIAs (missing in action) in the Korean War more generally, particularly Americans as there was in the 1990s rather surprisingly a joint US-North Korean programme to recover their remains.

This Clinton-era project foundered after a few years, not at all surprisingly, but there are now, equally surprisingly, signs the North Koreans want to revive it.

Admiral Robert F. Willard, the head of U.S. Pacific Command, said on Jan 27: “We’re going to enter into discussions with [North Korea] [about MIAs]. That is what we know right now.”

“They are willing to talk about it and we’re willing to address the particulars with them.”

“It’s a complex problem. We’ve been in (North Korea for recovery missions) before, and it appears that we’re being invited to consider going back again,” Willard told reporters at Camp Smith, Hawaii, according to the Honolulu Advertiser. “It’s something that we’ll take seriously and we’ll enter into dialogue with them and find out where it will lead.”

No date has been agreed on restarting the search for the remains. More than 8,100 Americans remain unaccounted for from the Korean War, according to the Department of Defense.

During Operation GLORY in 1954, North Korea returned the remains of over 2,000 Americans, the Department of Defense says .

“Between 1954 and 1990, the U.S. was not successful in convincing North Korea to search for and return additional U.S. remains,” the Defense Prisoner of War/Missing Personnel Office (DPMO) states on its website.

“However, from 1990 to 1994, North Korea exhumed and returned what they claimed were 208 sets of remains. Unfortunately, their records and recovery methods have hampered U.S. efforts to identify most of these. The North Koreans co-mingled the remains and the associated personal effects. These difficulties underscored clearly the need for joint field activities in which U.S. expertise would guide the recovery process and improve the identification results.”

Larry Greer, director of public affairs of the DPMO in Arlington, VA, confirmed to me that the North Korean army “informed the United Nations that they were willing to talk about remains recovery operations. That was at a Panmunjom meeting on the 26th [Jan], our time. The U.S. has not yet responded.”

The US military newspaper Stars and Stripes last year quoted a US Defense Department anthropologist who had taken part in the hunt for MIA remains in the North as saying he was frustrated that the operation north of the border had been suspended.

“I am always disappointed when politics interfere with human rights and bringing closure to families whose relatives died in Korea so long ago,” said Jay Silverstein during a search for remains in South Korea close to the border with the North.

He said he hoped some day to return to North Korea to continue to search for the remains of U.S. service personnel. “I found the North Koreans very pleasant to work with,” said Silverstein, who was overseeing the excavations in Hwacheon county about eight miles from the border with North Korea.

“My experience was very positive. It gave me a lot of hope for the future … that relations between the North and the South and the West and the rest of Asia will someday be improved.

“I found [the North Koreans] to be very reasonable people. Very friendly. We could sit down and have a beer, or smoke a cigar, and talk. It was quite pleasant,” he added. [Surely the first time a US military official has ever said anything nice about North Koreans? Ed]

Apart from the suspended agreement with North Korea, the United States reached an agreement with China in 2008 “to formalize research in Chinese archives on Korean War POW/MIA matters.”

The Chinese side seems to have been reluctant to share much information with the Americans so far, but the Chinese news agency Xinhua reported last October that “Chinese military archivists have identified more than 100 documents that could lead to the repatriation of the remains of the United States personnel who disappeared during and after the Korean War”.

It added that “China’s People’s Liberation Army (PLA) Archives Department has been combing more than 1.5 million archives of the then People’s Volunteer Army (PVA), the Central Military Commission (CMC) and the PLA headquarters during the Korean War.

“Archivists have given at least four valuable archives found in the first 10 percent to the Defense Prisoner of War/Missing Personnel Office (DPMO) of the U.S. Department of Defense.”

The Chinese report mentioned how archivists had located the site where a U.S. bomber crashed in 1950 in the southern province of Guangdong. “After visiting the site and interviewing 19 witnesses who helped them identify the burial site of U.S. crew, they believe the possibility of finding the remains is high,” it added.

The DPMO’s Greer said that “We are making slow steady progress” in the joint archive project.

He said that in September 2009 the US hosted six PLA archivists for annual discussions and to review arrangements, and that the archivists provided additional information on the Guangdong crash site which was part of their annual report in June 2009.

In October 2009, General Xu Caihou 徐才厚, vice-chairman of the PLA’s Central Military Commission, presented four Chinese-language documents to Defense Secretary Robert Gates during a visit to Washington.

“The documents concerned the Guangdong site and a F-86 Korean War crash site in China about which we were already aware.We have requested permission to investigate the Guangdong Province crash site in April this year,” Greer told me in an email.

“At the September 2009 meeting we also discussed amending our arrangement to facilitate the transfer of actual documents from the PLA archives to us and to permit joint PLA archives-DOD accounting community remains recovery work in China. The amendment process is underway now, but not final,” he added.

The South Koreans, who lost tens of thousands of soldiers in the war, would also like to hunt for their remains in the North.

President Lee Myung-bak said in a New Year’s address this would be an appropriate way to mark the 60th anniversary of the start of the Korean War.

But relations between the two Koreas are so frigid that I would lay a much bigger bet on the US search for MIAs restarting than on a similar agreement being signed between Pyongyang and Seoul.

With many thanks to Daily NK for drawing my attention to North Korea’s interest in reviving the MIA search.

The US has rejected the DPRK offer.  According to Reuters:

The United States on Thursday rebuffed a North Korean offer to reopen talks on finding U.S. soldiers missing since the Korean War, saying Pyongyang must first resume discussions on ending its nuclear ambitions.

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DPRK price level and exchang rate still unstable

January 27th, 2010

According to the Choson Ilbo:

North Korea is struggling to apply its new official foreign exchange rate, revised on Jan. 1, to hotels and shops in Pyongyang, according to a source.

A foreign diplomat stationed in Pyongyang said that the exchange rate is still “fuzzy,” citing hotel exchange rates in the capital dropping to W40 to one euro and rising to W51 a few days later. This is even after the North’s Central Bank initially set the rate at W138 to one euro earlier this month.

The source also said that shops near railway stations had stacks of goods unsold due to uneven prices.

Source:
New N.Korean Currency’s Value ‘Anyone’s Guess’
Choson Ilbo
1/27/2010

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