Archive for May, 2007

Agency to give the North raw goods

Tuesday, May 15th, 2007

Joong Ang Daily
Lee Young-jong
5/15/2007

With a one-time test run of an inter-Korean railroad set this week, South Korea’s Ministry of Unification said yesterday it will create an organization designed solely to provide $80 million worth of raw materials to North Korea.

The South promised to provide the materials, for light industry, in return for security assurances over the inter-Korean train line.

South Korea hopes the line will be permanent, but North Korea has only agreed to one test run.

The new organization will be jointly operated by related South Korean government agencies, Unification Ministry spokesman Kim Nam-sik said in a briefing yesterday. The agency will also represent South Korea in talks with the North over the joint development of a mine in North Korea.

The government is scheduled today to hold a meeting hosted by Unification Minister Lee Jae-joung to endorse a 2 billion won yearly budget for the organization, Kim said. The money will come from the Inter-Korean Cooperation Fund.

“The fund the government will provide to the organization is a kind of commission for doing state affairs instead of the government,” Kim said.

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Freedom of the Press 2007 Survey Release

Saturday, May 12th, 2007

Freedom House
5/1/2007

North Korea comes in last place again: 197

Asia-Pacific Region: The Asia-Pacific region as a whole exhibited a relatively high level of freedom, with 16 countries (40 percent) rated Free, 10 (25 percent) rated Partly Free, and 14 (35 percent) rated Not Free. Nevertheless, Asia is home to two of the five worst-rated countries in the world, Burma and North Korea, which have extremely repressive media environments, as well as several other poor performers such as China, Laos and Vietnam, all of which use state or party control of the press as the primary tool to restrict media freedom.

Several bright spots worth noting include Nepal, where wide-ranging political change led to a dramatic opening in the media environment, and Cambodia and Indonesia, which also featured positive movement. Asia saw many negative developments in 2006, however, continuing the downward regional trajectory noted in last year’s survey. Coups and military intervention led to the suspension of legal protections for press freedom and new curbs imposed on media coverage in Fiji and Thailand. Intensified political and civil conflict during the year contributed to declines in Sri Lanka, East Timor and the Philippines. Heightened restrictions on coverage, as well as harassment of media outlets that overstepped official and unofficial boundaries, negatively impacted press freedom in Malaysia, China and Pakistan.

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Two Koreas agree on train crossing, but just this once

Saturday, May 12th, 2007

Joong Ang Daily
Brian Lee
5/12/2007

After four days of marathon negotiations, the North’s military gave its blessing for a trial run of an inter-Korean railroad system.

At least once.

South Korea failed to get a permanent security assurance from Pyongyang, fearing that North Korea would try to wrangle concessions every time the train passes the world’s most heavily fortified border.

Most recently, Seoul agreed to give the North $80 million in raw materials for light industry following the test run of the train.

After the long negotiations, several issues were left undecided.

In a joint press release issued yesterday, the two Koreas said, “The two sides share the view that preventing military conflicts and creating a joint fishing zone in the Yellow Sea is an issue to be urgently resolved in the course of easing military tensions and establishing peace.”

The test run of the train is scheduled Thursday.

It would be the first in more than half a century, since an armistice ended the Korean War.

Seoul views the train crossings as a crucial building block to reduce tension on the Korean Peninsula and draw the reclusive state of North Korea more out into the open.

South Korea has built two rail crossings, one on the country’s east coast and another about 60 kilometers (40 miles) northwest of Seoul.

A planned test run in May of last year was cancelled at the last minute. Speculation ran high that the North’s military balked due to its own security worries.

The militaries of the two countries, who are still technically at war, agreed to meet again in July.

The two sides agreed to discuss the issue of establishing a joint fishing zone in the Yellow Sea and look into the possibility of allowing North Korean commercial vessels going to and from the North’s Haeju Port, which is located near the Northern Limit Line that serves as a demarcation line in the Yellow Sea, to directly pass through the border.

The two sides also agreed to try to have defense-minister level talks in the future.

The last and only one took place in September of 2000.

Meanwhile, the Unification Ministry said yesterday that delegations from both sides would meet in Kaesong today to finalize the details of the train test run.

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Railway test runs

Saturday, May 12th, 2007

Korea Herald
5/12/2007

South and North Korea have agreed to guarantee security for test runs on cross-border rail connections. The accord will make it possible for trains to resume operations across the Demilitarized Zone after the Korean War stopped the railway service more than five decades ago.

But South Korea may not be 100 percent assured that the test runs will proceed as scheduled, given that North Korean commitments have more often than not proved unreliable. Actually, North Korea withdrew its security guarantee on the eve of the railway test runs that had been scheduled for May 25 last year.

Moreover, the security accord is flawed because it will not apply to commercial operations that will follow the test runs. South and North Korea will have to negotiate enduring rules governing inter-Korea railway transportation in the near future.

At the four-day general-level talks that ended on Friday, the North Korean military withheld a security guarantee for commercial operations for the incomprehensible reason that construction of a southern part of the eastern rail link has yet to be completed. Given that the part in question could be reconnected anytime, the North Korean military no doubt has ulterior motives, including extracting concessions from the South in exchange for a security guarantee.

It goes without saying that North Korea is misguided in refusing to guarantee security for commercial operations. It is North Korea that stands to benefit much more from the rail connections.

But South Korea should also be held accountable for the North’s irresponsible behavior. It made the wrong decision when it decided to provide the North with $80 million worth of intermediate materials for the manufacture of necessities and 400,000 tons of rice in exchange for railway test runs.

When negotiating the terms of commercial operations next time, South Korea will have to avoid making similar mistakes. It has no reason to accept being played for a fool when offering a helping hand.

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Koreas exchange security guarantees for rail test

Saturday, May 12th, 2007

Korea Herald
5/12/2007

South and North Korea agreed yesterday to provide military security guarantees for the upcoming railway test runs across their border, and to take long-term measures to ease tension on the peninsula.

The deal, struck during unusually lengthy military talks, marked a significant breakthrough in Seoul’s seven-year-old policy of engagement with Pyongyang. Despite growing economic cooperation and other exchanges between the two Koreas, their armed forces remained locked in a tense stand-off.

“The two sides have shared the view that preventing military conflict and creating a joint fishing zone in the West Sea is an issue to be urgently resolved in the course of easing military tension and establishing peace,” read a joint press release issued after an unscheduled fourth-day session of the talks held in the truce village of Panmunjom.

South and North Korea are at odds over their western sea border.

The United Nations forces unilaterally drew the Northern Limit Line (NLL) in the West Sea at the end of the 1950-53 Korean War, but the North has called for a shift of the line southward.

North Korean fishing vessels and naval patrol ships often cross the line illegally. Two major deadly naval clashes occurred in 1999 and 2002.

The North also demanded that commercial vessels going to and from the North’s Haeju port near the NLL be able to pass through the sea border. Currently, North Korean ships have to take a long route through international waters to avoid the line.

The Koreas have agreed to discuss the issue after creating mutual military trust, according to the release signed by two-star generals.

The agreement on principle, however, lacks a concrete plan for taking the trust-building steps, with the two sides only saying they will continue related consultations.

The next round of general-grade talks is slated for July, and the specific date and venue will be fixed later, according to the release.

The two Koreas also adopted a separate statement of agreement on supporting the test runs of trains to run on two reconnected cross-border tracks on May 17. It will be a tentative step for the event, however.

South Korea called for a long-standing agreement to allow the safe passage of trains and vehicles across the heavily-armed Demilitarized Zone, but the North rejected the offer.

“The two sides have decided to discuss the issue of adopting a statement of agreement on military security for the operations of railways and roads,” the joint press release read.

The inter-Korean railroad was severed in 1951 and has been reconnected as a result of the historic summit between the leaders of the two Koreas in 2000.

During the test runs on May 17, a train carrying 100 people is scheduled to run from Munsan to Kaesong on a 27.3-kilometer line of the western section, and from Kumgang and Jejin on a 25.5-kilometer line of the eastern section – all across the Military Demarcation Line dividing the two countries.

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Audit report on UNDP to be presented to U.N. general meeting

Friday, May 11th, 2007

Yonhap
5/11/2007

An external audit report on United Nations activities in North Korea will be presented to a general meeting of the United Nations next week, a Washington-based radio station reported Friday.

Citing an informed source, Radio Free Asia said that an audit report is being made of the relevant documents and information without the inspectors visiting the communist country. The audit of all U.N. operations in North Korea began in March amid U.S. allegations that U.N. aid money was being diverted to the North’s regime.

The U.N. Development Program (UNDP) said it has completed the process of wrapping up all of its operations in North Korea, and its two remaining staff members were supposed to leave Pyongyang last week.

The agency suspended operations on March 1 because North Korea failed to meet conditions set by its executive board following suspicions that the aid money might be diverted for illicit purposes, including the development of nuclear weapons. It withdrew seven of its nine international staff in mid-March.

U.N. Secretary-General Ban Ki-moon ordered an external audit of all U.N. operations in North Korea that began on March 12.

The UNDP’s office equipment and materials are currently being safeguarded by the World Food Programme in Pyongyang and will be available to the auditors, officials from the international body said.

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Digging up the Past

Thursday, May 10th, 2007

Korea Times
Andrei Lankov
5/10/2007

Since the mid-1990s antique dealers in Seoul have uncovered a new source of quality items: North Korea. Indeed, around that time, antiques secretly excavated in North Korea began to arrive in Seoul in ever increasing quantities.

By the late 1980s, the antique trade in South Korea was going through hard times. Most of the important sources had been used up, and the state had established a fairly efficient control over excavations. Supply was shrinking, and prices kept growing. This was just when the antique items from North Korea hit the market.

This was a result of three important transformations. First, the famine and near collapse of the state bureaucracy in the North meant that many people were ready to do whatever it took to earn some money, and that officials, if given sufficient bribes, would not interfere much, if at all.

Second, the same combination of corruption and collapsing border controls essentially opened the Chinese border with North Korea.

Third, the adjacent areas of China became popular with Korean tourists who frequented the areas, and were on occasion ready to do some small and profitable, if illegal, business.

The major attractions are the Goryeo-era tombs which have been intensively excavated in the last decade (the major centers of the Goryeo Kingdom were located in what is now North Korea). These illegal diggings produced a flood of Goryeo items on the Seoul antique markets. Actually, the amount of antiques that have appeared makes archaeologists wonder about the scale of damage inflicted on the Goryeo sites in recent years. If rumors are to be believed, tomb raiding usually involves North Korean officials, people whose job would be to protect the historical site.

Apart from Goryeo “grave goods,’’ smuggled items include Buddhist images of all kinds, old books, furniture and stoneware. Some of these items originate from the Unified Silla Kingdom (7-10th century) while others are relatively new and can be dated to the early 20th century.

In most cases, the items are “mined’’ on the spot, but there have been a number of confirmed or nearly confirmed instances of books and other works which clearly have been stolen from museums and libraries in the North.

Then the items are transported to the border and smuggled into China. This might require bribing customs and immigration officials, but for a few hundred dollars one can purchase an uncontrolled passage (and, as a merchant told a South Korean journalist in an interview, well-paid custom officials can even help to move heavier items across the border).

The border city of Dandong plays the role of the major illegal market for the smuggled North Korean antique items. In China, some antiques go to the local buyers, but far more frequently the items are smuggled again, this time to Seoul, to appear in the antique shops in the Korean capital.

Some items are bought by rich collectors, while others end up in private museums. However, the Kookmin Ilbo journalists, who investigated the trade in 2005, discovered that museums are very secretive about such acquisitions, being uneasy about the legal implications of provenance, and the likely influence on relations between the two Koreas.

A major role in the business networks is done by two ethnic groups: the Joseonjok, or ethnic Koreans in China, and the hwagyo (huaqiao), the ethnic Chinese in Korea. Members of both groups have ample opportunities for legal cross-border travel, have money and connections, and are fluent in both languages.

They transport the booty, and also provide the North Korean diggers (not exactly experts in Goryeo celadon or early Joseon books) with instructions regarding the most preferable items at any given moment.

This is a risky business, and in the late 1990s the North Korean authorities attempted a number of crackdowns, with few high-level officials arrested for involvement in antique smuggling. However, people take risks.

A good piece of Goryeo-era ware would easily sell for tens of thousands of dollars in Seoul. Only a fraction of this money will go to the grave robbers, of course, with intermediaries and bribe-taking officials along the route pocketing the lion’s share of the profit.

Still, we can presume that a good piece would bring a successful digger a few hundred dollars. In a country where the average salary has fluctuated between one and five dollars a month, this is still a fortune, even for a minor official, and the more high-ranking policemen and security guys are making good living out of this.

It is somewhat difficult to judge these people too harshly, especially those who are driven to tomb raiding by the real threat of starvation, but there is no doubt that extensive and chaotic diggings are wiping out an important historical heritage. When archeologists arrive at the sites, sooner or later as they will, they will have to deal with the havoc produced by the illegal diggers, and many important traces of the past will be lost forever.

In tandem with the antiques, the forgery industry has also developed, with North Korean artisans learning the techniques used by South Korean experts. They know how to make a vase of a bottle from a few small pieces, how to imitate the old patterns on the ceramics, as well as many other tricks of an experienced forger. It seems that the North Korean forgers enjoy some competitive advantages over their South Korean colleagues. At any rate, the boom is not yet over.

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North Korean Propaganda Festival May Signal Shift in Policy

Thursday, May 10th, 2007

Bloomberg
Bradley Martin
5/10/2007

Since 2002, North Korea has invited visitors every few years to a festival featuring 60,000 dancers, gymnasts, acrobats and musicians, along with card-flippers who create vast pictorial mosaics covering one entire side of the 150,000-seat May Day stadium in the capital, Pyongyang.

The previous performance, in 2005, included noisy and bloody tableaux of North Korean soldiers making mincemeat of enemy soldiers. Last week’s Arirang production — named for a famous Korean love song — was different. Battlefield carnage was replaced with scenes of people seeking higher living standards by rebuilding factories and growing crops.

While North Korea is hardly going pacifist seven months after testing an atomic device, the propaganda shift may signal a significant change in policy, according to expatriate businessmen living in the isolated country. Now that it is a nuclear power, North Korea appears to be directing more resources to improving an economy on its knees after decades of sanctions and isolation, they say.

Korean officials “are now confident they can defend their country,” said Felix Abt, the Swiss president of PyongSu Pharma Joint Venture Co. Ltd., which recently started manufacturing painkillers and antibiotics in Pyongyang. “Their next priority is economic development.”

Consumer Goods

The policy emphasizes light industry to produce consumer goods. It was formally expressed in a joint editorial that was run at the beginning of the year in three major newspapers published by the regime, Abt said.

Getting verifiable information about policies in North Korea is still almost impossible, especially on tightly organized trips for foreigners in which government guides keep visitors on a short leash.

And if the propaganda on display during one of these visits last week can be believed, the government continues to conceive any new economic policy along the lines of a traditional, planned economy, focused on state-owned enterprises where workers are inspired to redouble their efforts and produce miracles of socialist endeavor.

The Arirang show made this abundantly clear. In an act called “Power and Prosperity,” the audience was urged to emulate “youth shock brigade” members and other working people in North Pyongan Province who recently completed Thaechon Youth Power Station No. 4 in spite of catastrophic shortages of food, energy and most other materials that became evident in the early- to-mid-1990s.

`The Power’

The performance illustrated that North Korea needn’t depend on foreign donations, said Kim Song Ho, 32, one of the tour guides assigned to foreign visitors this month. “Our country has the power to live by ourselves,” said Kim, who worked for the World Food Program’s Pyongyang office until the government reintroduced rice rationing in 2005 and told foreign-aid organizations it could manage mainly on its own.

In Thaechon, Kim said, “workers constructed a power station despite the bad situation without any help. Now the slogan is, `We will work like Thaechon Power Station workers.’ We renovated factories, built new factories and now the economy is booming more and more.”

Evidence of such economic change wasn’t included on the tour Kim was guiding. Kim said he would happily show such sites to the foreign visitor another time.

Different Conditions

The development schemes aren’t directly modeled on those of China or Vietnam, locals stressed. “The conditions of the Chinese and Koreans are different,” said Kim Hyon Chol, the 32- year-old chief guide of the tour group. “The biggest difference is that our country is not united.”

The regime has kept its propaganda options open on its military direction.

Billboards in the capital city showed a U.S. and a Japanese soldier both skewered on the same bayonet. And while there was no sequence in the Arirang show celebrating the country’s nuclear explosion or missile tests, a military parade on April 25 to which foreign residents were invited showed off a missile said to be capable of hitting U.S. bases on Guam.

At the Demilitarized Zone, which has divided North from South Korea since the Korean War armistice agreement was signed in 1953, Korean People’s Army Captain Han Myong Gil was asked whether North Korea is safer since its nuclear test. He replied that U.S. and South Korean forces had held huge military exercises even as diplomats talked of trying to bring peace to the Korean peninsula.

`Hostile Attitude’

“The saying goes in Korea, `If there are many clouds, it will soon rain,”’ the 28-year-old career officer said. “We can’t feel safe until the U.S. gives up its hostile attitude.”

Han eventually responded to a question about what he thought of his government’s spending money on a huge military apparatus – – North Korea’s troop strength is the world’s fourth largest — while people don’t have enough food.

“We receive fright and oppression from the U.S., so I cannot hide that our living standard is not high,” Han said. “We were on an arduous march for a long time. Now we are very proud because we defended socialism with the military-first policy. A strong country can defend itself, but the weak will be beaten down.”

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Status of US travelers in North Korea

Wednesday, May 9th, 2007

Office of Foreign Asset Control
(hat tip to Mr. Lukacs, with whom I visited Turkmenistan with Koryo Tours)

[Code of Federal Regulations]
[Title 31, Volume 2]
[Revised as of July 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 31CFR500.563]

[Page 543]
 
                  TITLE 31–MONEY AND FINANCE: TREASURY
 
 CHAPTER V–OFFICE OF FOREIGN ASSETS CONTROL, DEPARTMENT OF THE TREASURY
 
PART 500–FOREIGN ASSETS CONTROL REGULATIONS–Table of Contents
 
 Subpart E–Licenses, Authorizations and Statements of Licensing Policy
 
Sec. 500.563  Transactions incident to travel to and within North Korea.

    (a) All transactions of persons subject to U.S. jurisdiction, including travel service providers, ordinarily incident to travel to, from, and within North Korea and to maintenance within North Korea are authorized. This authorization extends to transactions with North Korean carriers and those involving group tours, payment of living expenses, the acquisition of goods in North Korea for personal use, and normal banking transactions involving currency drafts, charge, debit or credit cards, traveler’s checks, or other financial instruments negotiated incident to personal travel.
    (b) The purchase of merchandise in North Korea by persons subject to U.S. jurisdiction, and importation as accompanied baggage, is limited to goods with a foreign market value not to exceed $100 per person for personal use only. Such merchandise may not be resold. This authorization may be used only once in every six consecutive months. As provided in Sec. 500.206 of this part, information and informational materials are exempt from this restriction.
    (c) This section does not authorize any debit to a blocked account.

[60 FR 8935, Feb. 16, 1995]

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Inter-Korean trade jumps 43 percent in Q1

Wednesday, May 9th, 2007

Yonhap
5/9/2007

Despite lingering tension over North Korea’s nuclear weapons program, inter-Korean commercial trade surged 43 percent in the first quarter of this year, compared with the same period a year earlier, the Unification Ministry said Wednesday.

Commercial trade between the two Koreas increased to US$346.99 million in the January-April period, up from $243.36 a year ago, thanks to an influx of zinc bullion, sand, fishery items, shoes and clothing into a joint industrial complex in the North Korean border city of Kaesong.

The industrial complex is the crowning achievement of a landmark summit between the leaders of the two Koreas in 2000. South Korean businesses use cheap North Korean labor to produce goods in Kaesong where 21 South Korean factories employ about 11,160 North Korean workers.

“Non-commercial trade between the two sides dropped 24 percent during the same time span, so the total inter-Korean trade rose 25.5 percent to $411 million,” the ministry said in a statement.

In late March, South Korea started to send fertilizer aid and flood relief supplies to the North.

The shipment came weeks after the two sides agreed to resume humanitarian aid and family reunion events, just days after North Korea promised to take steps to shut down its main nuclear reactor and eventually disable it in return for energy aid from South Korea, the United States, China, Russia and Japan.

Shortly after the North conducted missile tests in July, the South suspended food and fertilizer aid along with its emergency aid to the impoverished North. In retaliation, the communist nation suspended inter-Korean talks, family reunions and the construction of a family reunion center.

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