Archive for the ‘Russia’ Category

Russia and China seek use of port in North

Wednesday, May 16th, 2007

Joong Ang Daily
Lee Yang-soo and Brian Lee
5/16/2007

With an eye on future transportation infrastructure, both Russia and China are courting North Korea to get in on the development of Najin port, in the far north of the country near the Russian border.

A Foreign Ministry official said yesterday that Russian Railways President Vladimir Yakunin is scheduled to visit North Korea to discuss launching a project aimed at improving and repairing a railroad from Najin to Khasan, just across the border into Russia.

Yakunin told former Prime Minister Han Myeong-sook, who visited Russia last month, that President Vladimir Putin had great interest in the project and Russia was hoping for the active participation of South Korean companies, the official said. The railway official visited Seoul in July last year to discuss the project with South Korean companies. The issue was also discussed in March at a bilateral meeting with Russia on economic cooperation.

A government official said that Russia wants to use Najin port as a logistics hub, but is also intending to develop the port into a base for future development of oil and natural gas in Siberia. The ultimate goal would be to connect the trans-Siberian railway with an inter-Korean railway system.

Beijing also has its eye on the North Korean port, which it envisions as part of its grand design to build a transport network that stretches from the Indian Ocean to the North Pacific.

“Najin Port is near the Jilin area and China’s own ports in the area have already reached their full capacity,” a government official said yesterday.

Beijing has recently notified Pyongyang that it is willing to spend $1 billion to develop port facilities, build railroads connecting the port to China and improve existing infrastructure such as highways, the official said.

In a report published earlier this year, Cho Myung-chul, a researcher at the Korea Institute for International Economic Policy, predicted that China would use investments in the North’s ports and railroads to extend its own infrastructure for export and import purposes. China has made similar investments in Burma and Bangladesh, among others.

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Is Seoul-Moscow Railway Linkage Feasible?

Thursday, May 3rd, 2007

Korea Times
Kim Yon-se
5/3/2007

President Roh Moo-hyun has expressed his willingness for economic cooperation with Russia, including linking the Trans-Korean Railway (TKR) and the Trans-Siberian Railway (TSR), by sending a letter to Russian President Vladimir Putin, a Chong Wa Dae official said.

But cooperation with North Korea would be required for the railway connection between Seoul and Moscow, government officials said.

Though experts from South Korea, North Korea and Russia have held a series of meetings to discuss the railway project over the past several years, it has lingered on due to a series of politically negatives surrounding the Korean Peninsula.

According to government officials, North Korea has won Russian pledges of economic aid by agreeing on the project, which will generate huge profits for Russia.

During the Kim Dae-jung administration, many hoped the railway project would provide a momentum for the reunification of the two Koreas.  Since 2001 when North Korean leader Kim Jong-il and Russian President Vladimir Putin agreed on the reconnection of the TKR and TSR, the project to restore the Gyeongui line which links Seoul to Pyongyang and Shinuiju in the North, was expected to recommence.

Reconnection of the Gyeongui railway was agreed upon during the inter-Korean summit talks in June 2000.

But the North withdrew its workforce and equipment from the area in 2001, while the South has completed more than 70 percent of the Southern part of the line.

When the TKR and TSR are connected, transportation costs will be cut and the time taken to ship cargo to Europe will be reduced to 20 days from 45 days, bringing a significant change to the logistics system in Northeast Asia.

In addition, the connection of the railways is expected to increase both countries’ revenues, as North Korea and Russia are likely to collect $100 million and $400 million in tolls, respectively.

“The letter to Putin did not contain anything new on the railway project, though the issue was included in suggestions for economic cooperation,” said Cheong Wa Dae spokesman Cheon Ho-seon.

He added that there has been no reply from Putin to Roh.

In the letter delivered by former Prime Minister Han Myeong-sook, Roh also proposed to hold a summit with Putin. Han traveled to Moscow on April 25 to attend the state funeral of former Russian President Boris Yeltsin.

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North seeks Russian or Italian home for its funds

Tuesday, May 1st, 2007

Joon Ang Daily
Brian Lee
5/1/2007

Still seeking access to the international financial system, Pyongyang has asked Macao authorities to transfer $25 million in funds to unnamed banks in Russia and Italy, signaling some progress in the deadlock over money held in a Macao bank.

Chinese Deputy Foreign Minister Wu Dawei told Japanese lawmakers visiting Beijing that North Korea broached the idea, the Kyodo News Agency reported. Wu said that Macao authorities are trying to determine whether the move is possible.

South Korean government officials held out hope that the news could be a catalyst in finally resolving an issue that has been dragging on for weeks. “We are ready at anytime to move on; we are just waiting for the clouds to clear,” said one official. Italy was the first European country to open diplomatic ties with Pyongyang in 2000.

The dispute over the money led the North to miss the April 14 deadline for shutting down its main nuclear reactor.

In what was viewed as a major concession, Washington announced on April 10 that it supported measures by Macao to unblock the North Korean funds held in Banco Delta Asia. The U.S. had said the money was the result of illegal activities.

However, other than saying that it has taken notice of such measures, Pyongyang has delayed withdrawing the money. Instead, through state media, the North said it was looking to integrate itself into the international financial system rather than just retrieve the money.

With China and Macao entering the labor day holiday starting today, it could be a few days before any transfer takes place, the government official in Seoul conceded.

A source said that Pyongyang had also asked banks in Singapore, Vietnam and Mongolia to agree to a transfer but was rebuffed.

Washington has endorsed measures to unfreeze the funds, but it has not withdrawn its designation of Banco Delta Asia as a confirmed money launderer.

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WFP aid drive for N.K. falls short with less than year left in program

Monday, April 16th, 2007

Yonhap
4/16/2007

The U.N. World Food Program (WFP) has only been able to gather one-fifth of the amount of recovery aid it is seeking for North Korea, with less than a year left in the aid program, according to the agency’s tally on Sunday.

A resourcing update for North Korea dated Thursday showed the WFP received donations totaling just short of US$21 million, accounting for 20.53 percent of the aimed $102 million. The donations include $3.2 million carried over from previous operations.

Russia remained the biggest donor with $5 million, which is almost 5 percent of the total. Switzerland provided $2.57 million.

Germany donated $1.66 million. Other contributors include Cuba, Denmark, Ireland, Luxembourg, Italy and Poland.

Private donations totaled $8,474 as of Thursday.

The United Nations has contributed $2.3 million, or 2.25 percent of the total.

Called “protracted relief and recovery operation,” the project runs from April 1, 2006, to March 31, 2008.

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Festive mood grips N. Korea as late founder’s birthday nears

Friday, April 13th, 2007

Yonhap
4/14/2007

A festive mood was pervading North Korea Saturday as the birthday of the communist state’s late founder drew near, with a series of exhibitions and gatherings being held, the North’s state media reported.

Pyongyang has staged art, sports and dance events annually for the birthday of Kim Il-sung, which falls on April 15, and is also known as the Day of Sun. Kim died of heart failure on July 8 1994 at the age of 82, and his son Kim Jong-il took power afterward.

Art troupes from China, Russia, Japan, Kazakhstan, India and Indonesia staged performances in Pyongyang on Saturday, the third day of the country’s April Spring Friendship Art Festival, according to the North’s state media.

A flower exhibition for “Kimilsungia,” an orchid named after Kim, was opened Friday with the North’s and foreign officials in attendance. The exhibition will be run until Thursday.

The festive mood is expected to culminate when the North stages the pro-unification Arirang festival Sunday through May 20. It is one of the North’s major gymnastics events and is popular among both Western and South Korean visitors.

Foreign delegations also have arrived Pyongyang to celebrate Kim’s birthday, the state media reported.

An Indonesian delegation made a visit to the North’s Mansudae Assembly Hall on Friday and conveyed a present to the incumbent North Korean leader via Kim Young-dae, the North’s No. 3 leader. It also toured Mankyongdae, the birthplace of the late founder in a rural village near the North Korean capital.

A Russian delegation also paid homage to a Kim Il-sung statue at the Mansudae Assembly Hall, while a Mongolian delegation paid visits to art exhibition halls and other sites to commemorate the birthday.

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Territory Unknown

Sunday, April 8th, 2007

Korea Times
Andrei Lankov
4/8/2007

It is a sort of commonplace statement that the U.S. forces which landed in Korea in early September 1945 had almost no local knowledge and no plans of what they were going to do. But it is sometimes stated, that the Soviet forces which had arrived two weeks earlier had some plans. Such statements are especially common on the political right. This is understandable: Human beings tend to see themselves as disorganized and unprepared while believing that their opponents possess diabolic foresight and an uncanny ability to exercise the utmost control over events. Fortunately or not, such a perception, the basis of all conspiracy theories, is usually wrong.

So did the Soviets have a plan when their forces fought their way to Korea in mid-August 1945? Obviously, not. At least this is what I can say from my frequent talks with the participants of those events, and also from the papers which I have seen.

Actually, Korea did not feature prominently in Soviet international strategy before 1945. For decades, Moscow’s policy toward Korea was subordinated to what appeared to be much more important _ its relations with China and Japan. The Soviet Union secretly subsidized and supported the Communist movement in colonial Korea, but this was a relatively small-scale operation seen, first and foremost, as a part of the larger efforts to undermine the Japanese empire.

The situation was exacerbated by Stalin’s Great Purge of the late 1930s. Before that, the Soviet citizens of Korean extraction played a prominent role in formulating the Soviet policy toward the peninsula. However, in the great slaughter of the bureaucrats and military officers that took place in the late 1930s, ethnic Koreans enjoyed especially bad survival chances. Their ethnicity made them suspicious, and few of them survived the bloodbath of 1937-38. As a result, the Soviet Foreign ministry, intelligence agencies, and armed forces lost what little Korea-related expertise they had possessed in earlier days. Those people who were responsible for the Korean policy in the 1920s and early 1930s were mostly shot or had died in various prisons by 1940.

There was also another reason for the Soviet reluctance to draw up plans for the political future of Korea. Nobody expected that the victory over Japan would be that swift. The Soviet military remembered their protracted and bloody battles with the Japanese during the undeclared border wars of the late 1930s, and so they were prepared for a campaign that would drag for many months.

However, the Japanese military machine collapsed in a week. Western readers believe that the reason was the nuclear attack on Hiroshima and Nagasaki _ a claim that was never particularly popular in Russia. Irrespective of their contribution to the outcome of the war, the nuclear bombs hardly changed much in Manchuria and North Korea. The Russian forces had experienced engagement with the Nazis in Europe, while the Japanese troops in the area were weakened by frequent withdrawals of their best forces to the Pacific theater.

Thus, in late August 1945 the Soviet generals suddenly found themselves responsible for a large territory of which they knew almost nothing. The army had few Korean speaking interpreters, and virtually no local political intelligence. Not only was it the local army headquarters that was lacking in this regard, even Moscow itself had only vague ideas about the political forces active in Korea _ and even this inadequate knowledge was largely about Seoul, not the areas of the North.

In the greater context of the post-war world, the future of Korea remained undetermined. The Kremlin expected that its relations with the U.S. would deteriorate ? on the generally correct assumption that any major victory brings about a greater rivalry between the winners.

However, the shape and intensity of this confrontation remained to be seen. In those days, the Soviets also felt a profound insecurity about Japan: the rebirth of Japan as a great power was seen as a potential threat, so Stalin wanted to make sure that Japan would never be able to threaten the Russian Far East if it somehow regained its military and/or economic power in a distant future. Thus, uprooting the Japanese influence in Korea was a major task for the Soviet leaders.

Thus, in late August, the Soviet forces had quite nebulous tasks in front of them. They wanted to ensure law and order (incidentally, threatened first and foremost by their own soldiers), get rid of the Japanese influence, and lay the groundwork for a future friendly Korean government.

The first instructions arrived only in late September, when Stalin sent his famous secret cable to Korea. His cable envisioned a “bourgeois democratic government” for the Soviet zone of occupation, and explicitly warned against attempts to export Communism to Korea. The cable obviously talked about a government in the North, and this can be seen as the first sign of future division. Nonetheless, this was only the first step: Coherent ideas about Korea’s future developed in the Kremlin only in early 1946.

The “September cable” also implied that the Soviets would have to cooperate with the local Right _ and indeed they soon recruited Cho Man-sik, a prominent Christian nationalist _ to act as a leader of the local administration.

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Russian merchants greatly increasing in Pyongyang

Thursday, April 5th, 2007

Daily NK
Han Young Jin
4/5/2007

On the 30th, Huanqiushibao, an international affiliated magazine of the Chinese People’s Daily, noted the above statement on Russia’s recent movement to invest in North Korea.

The paper said, “The Russian natural fuel gas business has already completed the preparation for providing energy support and is planning to manufacture petroleum in North Korea.”

“Russia has pioneered the Chungjin-Siberia railroad for a long time” and “if they retain the Eurasia continental rail, then they will gain an annual economic profit of four hundred million dollars,” the paper commented.

Further, the paper said that “Russia is finishing its preparation of surplus concentration in the Wondong (Far Eastern region) to export to North Korea.” As a provision of support to invest in North Korea, Russia is also driving the construction of the Kraskino-Chungjin 50,000 kv railway line for exporting Korea remodeling business and concentration of energy in Wondong to three thermal generating plants in the North.

The paper relays a Russian economic expert’s voice to expand investment in North Korea

Prekofts, Russia’s Wondong Economic Research Institute Chair, said, while emphasizing the importance of investment expansion, “We cannot limit items to invest in North Korea to resource and energy areas. China has already built a glass factory in North Korea. Why can’t we do what China is doing?”

Russia Considers Cancellation of 80 percent of North Korean debt

The paper said, “According to the numbers of the Russian government authorities, the 2006 trade figure with North Korea amounted to 210 million dollars and has been reduced by 13 percent compared to the previous year.” In the midst of such a situation, Russia has sufficiently considered the development potential of the North Korean market and is establishing a plan to encroach on the market according to the forecast that “it will be advantageous for the pre-acquiring party.”

According to the paper, President Putin commented, “The economic power with the world’s fastest rate of financial progress is overwhelmingly the Asia-Pacific region.”

The paper also said that because Russia considers of importance the strategic position of North Korea for connecting Europe and Asia-Pacific countries, it has considered the forward-looking way of remitting 80 percent (64 hundred million dollars) of North Korea’s 80 hundred million dollar debt.

The current system of exchange between North Korea and Russia is the former exporting labor power and agricultural goods and latter exporting energy, oil, and raw materials.

The paper reported that there has been opposing public opinion regarding Russia’s investment in North Korea. Because North Korea is not economically well-off, short-term recovery of investment gains is difficult.

The paper pointed out that a Russian merchant Merikonoft, who engages in international trade, said the following, “I do not have immediate plans to invest in North Korea. North Korea does not have laws for protecting foreign capital, so doing business is a type of exploration.”

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Taking Pulse of Herbal Medicine

Monday, March 19th, 2007

Korea Times
Andrei Lankov
3/19/2007

Herbal medicine occupies a very prominent place in the North Korean health care system.
In fact, it would be but a minor exaggeration to say that nowadays the North Korean health care system is largely built around traditional herbal medicine.

But this was not always the case. In the early years, until the mid-1950s, herbal medicine was looked upon with disapproval.

It did not appear ‘scientific’ enough, and the Soviet educated doctors saw it as a potentially dangerous superstition.

The first signs of the coming change in attitude were in 1954 when the licensing system for herbal doctors was first introduced.

But the revival of herbal medicine began in earnest in April 1956, when the North Korean cabinet of ministers accepted Decree No. 37, which envisioned the incorporation of herbal medicine into the official medical system. At the same time, Kim Il-sung made a very positive reference to herbal medicine in his lengthy speech delivered to the KWP Third Congress. By the end of 1956, there were 10 herbal medicine centers operating across the country, and by 1960 the number had reached 332.

I think it was not without good reason that this sudden revival of the medical tradition took place in 1956. This was when the North began to steer itself away from its Soviet patron, whose new policy of de-Stalinization met with growing disapproval in Pyongyang. It was also the time when nationalist trends began to grow in the North _ partially because nationalism served the interests of Kim Il-sung and his group, but also because it resonated with the feelings and world view of common Koreans. This created a fertile soil for the rejuvenation of hitherto neglected traditions. It is not incidental that in later eras the initial rejection of herbal medicine came to be blamed on the ‘factionalists’ _ that is, people who did not share Kim Il-sung’s nationalism and his drive for heavy industry and a powerful army at all costs.

And there was another dimension as well. We have been accustomed to thinking of herbal medicine as more expensive than its Western counterpart, but back in the 1950s the opposite was the case. Generally, East Asian medicine, which relied on local herbs, tended to be cheaper and this mattered in a poor country with limited resources.

Around the same time, herbal medicine was encouraged by the South Korean authorities as well. They also saw it as a cheap palliative, a substitute for the “real” Western medicine which only a few South Koreans could afford.

And, last but not least, the basic ideas of herbal medicine resonated quite well with Kim Il-sung’s new policy of selfreliance.

In a sense, herbal medicine was an embodiment of self-reliance in health care.

Thus, the 1960s was a period of triumphal advance for Eastern medicine in the North. For a while herbalists were trained in junior colleges, but from 1960, Pyongyang medical college opened a traditional medicine department. A number of research centers were created with the task of fusing the achievements of Western and traditional medicine. From 1960, a state evaluation committee began to operate, and in that year 239 North Korean herbalists became “Eastern medicine doctors, first class,” while 1,495 had to satisfy themselves with their inferior standing of “Eastern medicine doctors, second class.”

Of course, the growth of herbal medicine was accompanied by claims about wonder drugs and miraculous discoveries, to which the Stalinist regimes were so vulnerable (suffice to remind ourselves of the Lysenko affair in the USSR, or the improbable claims of wonder harvests in Mao’s China).

But the domination of Dr. Kim Pong-han, North Korea’s Lysenko, lasted for merely six years. In 1960 he claimed that he had discovered a new principal type of centralized system in the human body, somewhat similar to a nerve system of blood circulation. There was much talk of this alleged discovery and related medical miracles, but from 1966 all references to Professor Kim suddenly disappeared from the Pyongyang press.

The subsequent decades witnessed a continuous growth in the herbal medicine endeavor, which frequently received direct encouragement and approval from the Great Leader himself (after all, Kim Il-sung’s father once was a part-time herbalist himself). The reasons for the policy remained the same, and even some statements by Kim Il-sung were remarkably frank.

In 1988 he said, “If we produce a lot of Koryo medicine drugs, it is good not only for curing diseases, but also for solving the drug problem, since it will reduce the importation of drugs from other countries.” More than a dozen colleges now train herbalists in the North, and from 1985 would-be Western doctors have also been required to take introductory classes in Eastern medicine.

Perhaps, in some post-unification world the North will become a major source of quality herbal doctors, and their presence will help to drive down prices for this service which many Koreans take so seriously. Who knows, but there are already North Korean herbalists working in the South.

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Russia to reopen trade talks with NK next month

Wednesday, February 28th, 2007

Yonhap
2/28/2007

Russia and North Korea will resume meetings of their trade and economic cooperation committee late next month, ending an over six-year suspension, Russian government officials here said Wednesday.

The joint panel’s last meeting was held in Pyongyang in October 2000, the officials said.

The upcoming meeting, the fourth of its kind, will be held in Moscow from March 22-23, and discussion will focus on Pyongyang’s financial debt to Moscow, according to the officials.

The North’s debt reportedly amounts to US$8 billion dollars, and a considerable part of it is expected to be written off.

Russia, N. Korea to discuss debt payment, other issues in Moscow
Novosti
(Hat Tip DPRK Studies)
2/27/2007

Russia and North Korea will meet March 22-23 in Moscow to discuss debt repayment by the reclusive regime and other economic matters, a Russian official said Tuesday.

Russia and North Korea agreed February 27 on a timeframe for the intergovernmental bilateral commission on economic, scientific and technical cooperation to hold its first session since 2000, Yevgeny Anoshin, press secretary of the Russian half of the commission, said.

Konstantin Pulikovsky, the former presidential envoy in the Far Eastern federal district and now head of the Russian technical standards body, Rostekhnadzor, will lead the commission on behalf of Russia, Anoshin said.

“The intergovernmental commission will yield real results only if Russia’s and North Korea’s finance ministries find during February an acceptable solution to the repayment of Pyongyang’s debt to Russia,” Pulikovsky earlier said.

According to Russian experts, North Korea owes more than $8 billion to Russia, including interest.

In addition to the debt repayment, the commission is expected to focus on Korean labor in Russia, plans to continue building the trans-Korean railroad and connecting it to the Trans-Siberian rail, and the possibility of delivering and refining Russian crude in North Korea.

Representatives of Russia’s economics, transport and finance ministries and the rail monopoly Russian Railways will attend the commission’s session, Anoshin said.

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Seoul Wants 6 Nations to Shoulder Burden for Energy Aid to NK

Sunday, February 11th, 2007

Korea Times
Park Song-wu
2/11/2007

South Korea is thinking of chairing a working group for energy aid to North Korea as the United States is trying to differentiate this round of the six-party talks from a 1994 process, a Seoul official said on Sunday.

But Seoul has a firm position that all parties should jointly pay the “tax” for peace, he said.

“Denuclearization will benefit all parties, so the burdens should be shared jointly,” he said. “But we are thinking of taking the lead in the working group for energy aid, considering the circumstances of the other parties.”

He did not elaborate. But Tokyo is not expected to raise its hand to chair the working group, considering the Japanese anger over the North’s abduction of its nationals in the past.

Russia prefers forgiving the North’s debts instead of providing it with energy.

China, host of the multilateral dialogue, is already playing the most important role of chairing the six-party meeting.

What the United States apparently has in mind, and consented to by all parties, is the necessity to differentiate the result of these on-going negotiations from the 1994 Agreed Framework.

Since it was signed by Robert Gallucci and Kang Sok-ju in Geneva on October 21, 1994, Washington provided 500,000 tons of heavy oil annually to Pyongyang over the following seven years.

But the North’s promise to freeze its graphite-moderated reactors in return for two light-water reactors was not obeyed, causing the Bush administration to criticize the deal as a diplomatic failure of his predecessor, Bill Clinton. After that, U.S. diplomats even avoided meeting their North Korean counterparts bilaterally.

The U.S. policy, however, has recently reached a turning point.

“The Bush administration may have been driven to greater negotiating flexibility by a need to achieve a foreign policy victory to compensate for declining public support for the Iraq war and the loss of the Republican leadership of Congress,” Bruce Klingner, a senior research fellow for the Heritage Foundation said in a recent article.

But one thing that has not changed is the U.S. hope of not repeating the “mistake” it made with the Geneva agreement.

From 1994 to 2002, Pyongyang received 3.56 million tons of heavy oil, equivalent to $500 million, from the now-defunct Korean Peninsula Energy Development Organization (KEDO), and the United States shouldered the largest share of $347 million.

To shake off that bad memory, Washington wants to use the term “shut down” instead of “freezing” and even wants to avoid providing fuel oil to the North, reportedly citing the possibility that it can be used for military purposes.

So the talks have dragged on. And, to make things worse, the North Koreans are demanding a lot.

Japan’s Kyodo news agency reported that North Korea had demanded 2 million tons of heavy oil or 2 million kilowatts of electricity in exchange for taking the initial steps towards denuclearization.

Christopher Hill, the top U.S. envoy, expressed hope on Sunday that such technical issues could be discussed at working group meetings. On the same day, the Seoul official hinted that South Korea will chair the working group.

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