Archive for the ‘Illicit activities’ Category

Room (Bureau) 38 allegedly restored

Wednesday, June 23rd, 2010

According ot the Choson Ilbo:

North Korea in March restored a special department in the Workers Party codenamed Room 38 which manages leader Kim Jong-il’s coffers and personal slush funds, it emerged Monday. The North last fall merged Room 38 with Room 39, which manages party slush funds.

“Rooms 38 and 39 were merged to simplify Kim Jong-il’s slush funds,” said a North Korean source. “But when it became difficult to secure hard currency due to international sanctions, Room 38 seems to have been restored because there was a feeling that Room 39 alone can’t meet the need.”

Room 38 is reportedly led by Kim Tong-il, who heads three regional departments in charge of earning hard currency.

Room 39 tries to maximize earnings from gold and zinc mining and farming and fisheries. It also manages stores and hotels exclusively for foreigners in Pyongyang. Room 39 seems to have suffered badly due to the recent suspension of inter-Korean trade. “Taesong Bank and Zokwang Trading, which received remittances from Mt. Kumgang tourism, are both controlled by Room 39, and is also in charge of the exports of agricultural and fisheries products,” said a government source.

Kim Jong-il needs dollars to maintain the party elite’s loyalty to him and his heir presumptive. He is said to have told party bigwigs in February, “From now on I will judge your loyalty based on the amount you contribute to the fund.” His son Jong-un is also said to be amassing separate slush funds for his own use.

But international sanctions on exports of weapons, counterfeit dollars, fake cigarettes and drugs remain in place, and the United States is pushing ahead with additional financial sanctions over the North’s sinking of the South Korean Navy corvette Cheonan in March. Pyongyang was dealt a heavy blow in 2005 when the U.S. froze US$25 million in the Banco Delta Asia in Macao which was apparently for Kim’s personal use.

Kim earlier this year appointed his high school friend Jon Il-chun head of Room 39. Jon was also named chairman of the National Development Bank, established early this year with a view to conducting normal international financial transactions to induce foreign investment. “North Korea seems to be planning to divert part of foreign investment to Kim’s slush fund,” said a government official.

NK Leadership Watch has more

Read the full story here:
Kim Jong-il Restores Special Department to Swell Coffers
Choson Ilbo
6/24/2010

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The DPRK Missile Show: A Comedy in (Currently) Eight Acts

Tuesday, June 8th, 2010

Draft paper by Robert Schmucker and Markus Schiller
May 5, 2010

Download the PDF here

Summary
Today, there are at least seven different missile types of longer range available in North Korea – Scud B, Scud C, Scud D, Nodong, R-27/BM-25, Taepodong 1 and Taepodong 2/Unha-2. All were developed during the last three decades, each of them within a few years, and six are subject to the INF treaty. Some of the missiles have common roots, but their diameters vary significantly, ranging from 0.88 m over roughly 1.3 m and 1.5 m to about 2.5 m. This means that North Korea managed to develop at least four completely different lines of missiles to perfection and serial production, all of them with a negligible number of test launches. A total of roughly a dozen missile tests was actually observed before 2009, a number that is even today insufficient for only one military missile development in the USA, Russia, China or France. The repeating reports of North Korean “short range missile tests” are irrelevant – at those tests, the DPRK launches small anti ship missiles that were purchased in China or Russia. This has nothing to do with ballistic missiles.

It is often argued that the North Korean missiles are tested in other countries, namely Syria, Pakistan and Iran. This argument is insufficient. Combining all Scud B, C, D and Nodong launches in these countries, they are still not enough for a respective indigenous development, and the other missile types were never launched outside the DPRK. The choice of launch sites in the respective countries also is a clear indication: Pakistan tests its missiles close to Cashmere at the border to India, and as previously mentioned, Syria launched Scud D at the Israeli border. If the missiles head in the wrong direction – what is not uncommon at development tests –, this would have catastrophic consequences. Therefore, it must be assumed that these missiles had already had finished their development programs.

Aside of their small number, the sequence of North Korean tests is also noteworthy. There were only sporadic launches from 1984 to 2006, with a total of roughly ten. This was followed in 2006 and 2009 with an event of about a half dozen missile launches within a few hours, respectively, both including a large satellite launch vehicle. There might be a link to Iran’s and Pakistan’s orientation towards modern solid rocket technology. Russia can offer nothing on this market because of the imposed restrictions of the INF treaty – there are no old Soviet solid fueled missiles of this performance class, and new developments in this class are not allowed by INF – the required tests might be observed by the USA. Iran also increases its indigenous activities, resulting in a foreseeable loss of this source of funding. No wonder that the DPRK now has to demonstrate larger systems to stay in the proliferation game.

Conclusion
This is the visible North Korean situation: A country that has absolutely no other technical and economic merits offers a variety of quickly reverse engineered and indigenously developed high tech weapons, all of them with typical Soviet characteristics.

Every other country in the World had to rely on outside help of experienced institutions for their missile programs: China on Russia, India on the US and France, Pakistan on China and France, and so on. Even the US and the Soviets acquired German expertise after World War 2. Every country had foreign support for their missiles – except the DPRK.

It should be noted here that the common view of North Korea’s reverse engineering capabilities seems to come from one single source in the late 1980s, without any further proof. Today, this source is reported to see these claims with different eyes.

To get back to the analysis method that was introduced at the beginning: The three aspects country, program and missile are not compatible. The DPRK has no capabilities on any other area than rocketry, the programs are invisible or nonexistent, but a selection of operational missiles is offered that should even have countries like France, for example, go green with envy.

It is also strange that Russia silently watches the DPRK cloning and selling Soviet products, thus earning hundreds of millions of dollars, and doing this without any financial compensation for the Russians.

These antagonisms can be explained on several ways. Some claim that in the age of computer simulations, a single test is enough to proof functionality of highly complex machines such as missiles. After that, the missile goes straight into serial production. But this obviously only works in the DPRK: The new Russian submarine missile Bulava, for example, seems to have failed in 7 of its 12 flight tests so far – operational deployment is far from any discussion.

There is a different explanation that is much simpler – a connection to Russian institutions. All of the North Korean missiles were procured from Russia or at least realized with foreign support. Some, as Scud B, might come from old stocks, single remainders of old Soviet prototypes certainly were among them, and others might still be in production. A guided North Korean licensed production of simpler components can also not be excluded. In any case, the indigenous contributions of the DPRK are small at best. It is not said, though, that the Russian government or the leadership of the institutions in question know of this: Much happens in dark alleys, as was illustrated by the example of the Gharbiya gyros for Iraq.

The DPRK will of course try to reverse engineer parts and components, and it will try to acquire the capabilities for indigenous development and production. Due to this, single engine tests should be observable, not only to demonstrate indigenous activities, but also to learn and to slowly increase the DPRK’s competence on the missile sector.

But in the public opinion, this explanation is wrong, because – well, because it cannot be right. Because there is a well established view of North Korea that is also confirmed by defectors: The rockets are secretly designed, tested and produced in huge underground facilities, and these efforts are directed by an evil and megalomaniac villain who threatens the free world with his missiles.

How to best counter this type of threat should be known from the movies – just call James Bond.

More from CxI and NPR.

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PRC holds DPRK official on drug trafficking

Tuesday, June 8th, 2010

According to the Choson Ilbo:

South Korean activist Do Hee-yoon quoting a source in China on Monday said that a 33-year-old official surnamed Rim from the Sinuiju city government’s trade bureau was arrested by Chinese police on charges of drug trafficking in Dandong on the evening of March 2.

“North Korean agents targeting South Korea have been arrested before for their involvement in drug trafficking, but it’s unprecedented for a senior government trade official to be arrested for direct involvement,” Do said. “The Dandong Customs Office has mobilized customs officials from Dalian to probe all aspects of North Korea-China trade.”

The drug enforcement bureau of Anshan in Liaoning arrested four drug dealers based on a tip that Dandong drug dealers gained control of the trafficking network in Anshan, he added.

Under questioning, they revealed that a key figure in the drug ring in the Dandong area was a North Korean and that he was soon to arrive. Officers arrested Rim in Dandong on the evening of March 2 about after a month-long stakeout and took him to Anshan.

The bureau confiscated 2 kg of top-quality methamphetamine Rim had hidden in a kimchi container when he traveled from Sinuiju to Dandong, Do said. Rim was reportedly a very influential man in the North Korea-China trade. Despite the danger, he had traveled to China to buy goods necessary for his younger sister’s wedding scheduled for March 6 and take bribes.

“It seems Rim took a lot of bribes. There are rumors that he was going to take three large truckloads of goods back to the North,” Do said. “Rim’s arrest confirms that the North engages in international drug trafficking at the state level,” he added.

A South Korean official said the government has similar information but China has not officially confirmed it.

Read the full story here:
N.Korean Official Held in China for Drug Trafficking
Choson Ilbo
6/8/2010

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UN accuses DPRK of viloating sanctions

Tuesday, June 1st, 2010

According to the BBC:

A United Nations panel has accused North Korea of continuing to export nuclear and missile technology in defiance of a UN ban.

The experts said North Korea has used front companies and intermediaries to sell weapons and provide illegal assistance to Iran, Syria and Burma.

The preliminary report was compiled by a seven-member group that monitors Pyongyang’s compliance with sanctions.

The 47-page report outlined a broad range of techniques used by North Korea to evade sanctions imposed by the UN after the North’s nuclear tests of 2006 and 2009, the Associated Press reports.

The report said North Korea had moved quickly to replace banned individuals and entities with others to enable it to continue the nuclear trade.

Among a number of “masking techniques”, it said the North describes exports falsely, mislabels shipping container contents, falsifies information about the destinations of goods and uses “multiple layers of intermediaries, shell companies, and financial institutions”.

The report said North Korea has a range of legitimate trade offices but also sustains links with international criminal organisations to pursue the banned trades.

An unnamed diplomat told Reuters the findings were “not entirely surprising”.

“The point is that North Korea has been providing that kind of aid to Iran, Syria and Burma,” he said.

The report comes before a crucial day of talks in New York about the future of the Nuclear Non-Proliferation Treaty.

It also comes at a time of increased tension surrounding what international investigators say was a deadly North Korean torpedo attack on a South Korean warship in March.

Read the full article here:
North Korea ‘trading nuclear technology’ says UN panel
BBC
5/28/2010

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Can North Korea be safe for business?

Thursday, May 20th, 2010

Geoffrey Cain writes in Time:

Few investors can boast the one-of-a-kind global pedigree of Felix Abt. Since 2002, the Swiss businessman has found his calling as a point man for Western investments in — of all places — North Korea, where he helped found the Pyongyang Business School in 2004. He also presided over the European Business Association in Pyongyang, a group in the capital that acts as a de facto chamber of commerce. A few years ago, that position led him to help set up the first “European Booth” featuring around 20 European companies each year at the Pyongyang Spring International Trade Fair, an annual gathering of 270 foreign and North Korean companies currently underway in the hermit kingdom until Thursday.

Yet Abt, 55, who lives in Vietnam and therefore won’t be attending the trade fair this year, laments the giant cloud hanging over the country: in recent years, political turmoil on the peninsula has raised the stakes even further for doing business in North Korea — even for the country’s main patron, China. Though investors have always faced the prospect of sanctions, he says, the situation has worsened after the United States ratcheted up sanctions on the government in 2006 on allegations that it was counterfeiting U.S. dollars. And in 2006 and 2009 the Kim Jong-il regime tested two small nuclear bombs, prompting heavier sanctions from the United Nations in 2006. Recently, tensions with Seoul have spiked over the March sinking of a South Korean corvette in waters near the North.(See pictures of the rise of Kim Jong-il.)

Those measures hit home for Abt. While he was running a pharmaceutical company in Pyongyang called Pyongsu in the mid-2000s, he learned that the U.N. Security Council had imposed sanctions on certain chemicals — a move that could have forced him to completely stop manufacturing medicine. Thankfully, he adds, he had already secured a large stock of the substance beforehand. “Whatever business you are involved in,” he says, “some day you may find out that some product or even a tiny but unavoidable component is banned by a U.S. or U.N. sanctions because it can, for example, also be used for military purposes.”

Those dilemmas haven’t stopped Abt. In 2007, he co-founded an information technology firm in Pyongyang called Nosotek, whose 50 or so employees design software applications for the iPhone and Facebook. The venture has already seen its share of success: one of its iPhone games ranked first in popularity for a short while on Apple’s Top 10 list for Germany — though he can’t name the software out of concern for protecting his contractors from bad publicity.(See pictures of North Koreans at the polls.)

For some companies, the stigma of a “Made in North Korea” label matters less than the competitive edge gained from having low overhead costs and a diligent workforce whose wages remain less than outsourcing powerhouses like China, Vietnam and India. In the past, North Korea has attracted the interest of multinational corporations looking for cheap labor in fields as diverse as electrical machinery and cartoon animation. Yet few multinationals show their faces at this month’s fair, a decline from the early 2000s when Abt says they were appearing regularly to look for opportunities in electricity, infrastructure, transportation and mining.

Not all foreign ventures in the North are driven by profit margins alone. The 2005 animated Korean movie Empress Cheung, a popular fantasy film drawn jointly by South and North Korean animators, brought attention to the animation industry in North Korea. Nelson Shin, head of the Seoul-based animation studio that started the project, claims he worked with North Korea for a greater cause than cheap labor. “It wasn’t so much because of cost efficiency as because of cultural exchange between the two Koreas,” he says.

For a country so poor, North Korea has churned out a remarkable number of talented engineers and scientists who fuel some of these small sectors (along with its controversial nuclear weapons program). In the 1960s and 1970s, the government pushed the country to become self-sufficient through development projects, a part of its ideology of “Juche” that promotes absolute autonomy from foreign powers. The communist regime of Kim Il-sung prided itself on its universities and public housing system, in particular. “It was an advance from pre-World War II days,” says Helen-Louise Hunter, a former CIA analyst now in Washington, D.C., who researched North Korea during those decades. “Kim Il-sung was genuinely interested in improving his people’s standard of living, and was off to a good start in a couple of areas compared to South Korea in those early days.”

Yet North Korea fell behind after the South’s own military dictators put their country into industrial overdrive throughout the 1970s and 1980s. Then the Soviet Union collapsed in 1989, depriving North Korea of valuable aid. Then came a famine in the mid-1990s that delivered the final blow, leaving up to 3 million people dead and crippling the capacities of the already isolated state.

Today, the pariah regime of Kim Jong-il is allegedly known to raise money through illicit activities like trafficking narcotics and money laundering. But it’s not known how much those activities figure into the country’s GDP of $28.2 billion in 2009 and its $2 billion worth of exports in 2008, the most recent year data is available. “Not that much income comes from illegitimate operations if you mean drugs and counterfeited dollars,” says Andrei Lankov, a North Korea expert at Kookmin University in Seoul. “More come from arms sales, though, but I would not describe this as an illegitimate trade.”

Abt shakes off the image of Pyongyang being the center of a mafia state. He sees himself and other foreign investors as the potential movers and changers of Kim’s hermit regime. “Cornering a country is ethically more questionable than engagement,” he says. “Foreigners engaging with North Koreans are change agents. The North Koreans are confronted with new ideas which they will observe and test, reject or adopt.”

Read the full story here:
Can North Korea Be Safe for Business?
Time
Geoffrey Cain
5/20/2010

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Myanmar buying DPRK military equipment

Sunday, May 16th, 2010

According to Interconnected World:

Secrecy normally shrouds military relations between Burma and its strategic allies such as China and North Korea, but intelligence sources suggest ongoing military ties with these two countries are helping the Burmese generals’ to achieve their military ambitions, including that of becoming a nuclear power.

Intelligence sources said top junta generals have held late- night meetings in Naypyidaw in the last two months, discussing military modernization, foreign relations, tension with ethnic groups and suppressing dissidents in urban areas.

They said the junta bought weapons from China and North Korea including mid-range missiles and rocket launchers in April, and suggested the war office in Naypyidaw chose the month when the Burmese celebrate new year in order to avoid public scrutiny.

Equipment necessary to build a nuclear capability was reportedly among imported military supplies from North Korea that arrived at the beginning of the holidays.

A report from Rangoon in April also referred to an undisclosed vessel believed to be connected with North Korea that was seen at Thilawar Port, near Rangoon. Burmese officials at the time said the vessel was there to load Burmese rice destined for North Korea.

Military relations between Naypyidaw and Pyongyang have been attracting attention from analysts, diplomats and journalists in recent years. In August 2009, an article in Sydney Morning Herald alleged the Burmese junta aims to get an atomic bomb in five years using Burmese enriched uranium and North Korean nuclear technology.

Apart from nuclear know-how and equipment, Pyongyang has also provided the Burmese junta’s armed forces with truck-mounted multiple rocket launchers, surface-to-air and surface-to-surface missiles and technology for underground warfare since the early 2000s, according to experts on Burma’s military like Andrew Selth.

“Pyongyang needs Burmese primary products, which Naypyidaw can in turn use to barter for North Korea arms, expertise and technology,” wrote Andrew Selth in the Australian Journal of International Affairs in March.

Read the full article here:
Burma said buying arms from China, North Korea
Interconnected World
5/10/2010

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The DPRK’s illicit international activities

Sunday, April 18th, 2010

The Strategic Studies Institute has published a paper on the DPRK’s illicit activities.  You can download the paper here (PDF). It has been added to my DPRK Economic Statistics page.  Here is the forward:

The authors of this monograph have exposed a key piece of the puzzle which helps to provide a better understanding of North Korea’s surreptitious international behavior. For years, North Korea’s military provocations have been obvious to the world, however, much of its decisionmaking is shrouded in secrecy, particularly that of a wide-range of clandestine activities. This monograph is unique in the way that it sheds light on the illicit activities of the regime, and how those illegal activities are used to support its military programs and the government itself.

From drug trafficking to counterfeiting, from money laundering to cigarette smuggling, North Korea’s Central Committee Bureau 39 is an active participant in the criminal economy of the region with tentacles extending well beyond Asia. The authors discuss how these activities have negative strategic consequences for a number of stakeholders and nations throughout the region while describing how such activities provide critical funding streams for military programs and regime supporters.

As a result, North Korea is not just a “rogue state,” but practices what is essentially criminal sovereignty whereby it organizes its illegitimate activities behind the shield of non-intervention while using the tools of the state to perpetrate these schemes abroad. The authors argue that this arrangement has important links to succession issues within the regime. They also argue that policy makers who are concerned with the development of future policies and strategies aimed toward North Korea must view those new policies from a different perspective than that used in the past.

This paper draws heavily on information from Kim Kwang-jin who is working at the Committee for Human Rights in North Korea. Without Mr. Kim’s contributions, much of this activity would remain unknown to us.  You can make a donation to support Mr. Kim’s work here in the US at this web page.

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Hermit economics hobbles Pyongyang

Wednesday, March 31st, 2010

Aidan Foster-Carter writes in the Financial Times about some poor decision-making coming out of Pyongyang:

Great Leader? Pyongyang’s fawning hagiography not only grates, but is singularly unearned. Even by its own dim lights, North Korea’s decision-making is going from bad to worse.

Last year saw two spectacular own goals. Missile and nuclear tests were a weird way to greet a new US president ready to reach out to old foes. The predictable outcome was condemnation by the United Nations Security Council, plus sanctions on arms exports that are biting.

Domestic policy is just as disastrous. December’s currency “reform” beggars belief. Did Kim Jong-il really fail to grasp that redenomination would not cure inflation, but worsen it? Or that brazenly stealing people’s savings – beyond a paltry minimum, citizens only got 10 per cent of their money back – would finally goad his long-suffering subjects into rioting? Forced to retreat, officials even apologised. One scapegoat was sacked – and possibly shot.

By his own admission, Mr Kim does not do economics. In a speech in 1996, when famine was starting to bite, the Dear Leader whined defensively that his late father, Kim Il-sung, had told him “not to get involved in economic work, but just concentrate on the military and the party”.

That awful advice explains much. Incredibly, North Korea was once richer than the South. In today’s world, this is the contest that counts. “It’s the economy, stupid” is no mere slogan, but a law of social science.

Having taken an early lead, Kim senior threw it all away. He built the world’s fourth largest army, crippling an economy that he refused to reform, viewing liberalisation as betrayal. His own personality cult was and is a literally monumental weight of unproductive spending.

Used to milking Moscow and Beijing, in the 1970s North Korea borrowed from western banks – and promptly defaulted. That was not smart; it has had to pay cash up front ever since.

Pyongyang also resorts to less orthodox financing. In 1976 the Nordic nations expelled a dozen North Korean diplomats for trafficking cigarettes and booze. In December a Swedish court jailed two for smuggling cigarettes. More than 100 busts worldwide over 30 years, of everything from ivory and heroin to “supernotes” (fake $100 bills), leave scant doubt that this is policy.

Yet morality aside, it is stupid policy. Pariahs stay poor. North Korea could earn far more by going straight. The Kaesong Industrial Complex (KIC), where South Korean businesses employ Northern workers to make a range of goods, shows that co-operation can work. Yet Pyongyang keeps harassing it, imposing arbitrary border restrictions and demanding absurd wage hikes.

Now it threatens to seize $370m (€275m, £247m) of South Korean assets at Mount Kumgang, a tourist zone idle since a southern tourist was shot dead in 2008 and the north refused a proper investigation. Even before that, Pyongyang’s greed in extorting inflated fees from Hyundai ensured that no other chaebol has ventured north. Contrast how China has gained from Taiwanese investment.

In this catalogue of crassness, the nadir came in 1991 when the dying Soviet Union abruptly pulled the plug on its clients. All suffered, but most adapted. Cuba went for tourism; Vietnam tried cautious reform; Mongolia sold minerals. Only North Korea, bizarrely, did nothing – except watch its old system crumble. Gross domestic product plunged by half, and hunger killed up to a million. Now famine again stalks the land. The state cannot provide, yet still it seeks to suppress markets.

All this is as puzzling as it is terrible. China and Vietnam show how Asian communist states can morph towards capitalism and thrive. Kim Jong-il may fear the fate of the Soviet Union if he follows suit. True, his regime has survived – even if many of its people have not. Yet the path he is on is patently a dead end. Mr Kim’s own ill-health, and a belated bid to install his unknown third son as dauphin, only heighten uncertainty. Militant mendicancy over the nuclear issue – demanding to be paid for every tiny step towards a distant disarmament, then backsliding and trying the same trick again – will no longer wash. North Korea has run out of road; the game is finally up.

What now? A soft landing, with Mr Kim embracing peace abroad and reform at home, remains the best outcome. But if he obdurately resists change, we need a plan B. The US and South Korea have contingency plans for the north’s collapse. So does China, separately. Tacit co-ordination is urgent, lest future chaos be compounded by a clash of rival powers – as in the 1890s. Koreans have a rueful proverb: when whales fight, the shrimp’s back is broken.

But Beijing will not let it come to that. China is quietly moving into North Korea, buying up mines and ports. Some in Seoul cry colonialism, but it was they who created this vacuum by short-sightedly ditching the past decade’s “sunshine” policy of patient outreach. President Lee Myung-bak may have gained the Group of 20 chairmanship, but he has lost North Korea.

Nor will Mr Kim nuzzle docile under China’s wing, though his son might. As ever, North Korea will take others’ money and do its own thing. In early 2010 new fake “super-yuan” of high quality, very hard to detect, started appearing in China. They wouldn’t, would they?

Read the full article here:
Hermit economics hobbles Pyongyang
Financial Times
Aidan Foster-Carter
3/30/2010 

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Russia and Japan extend DPRK sanctions

Wednesday, March 31st, 2010

According to the Associated Press:

Russia’s president has signed an order formally implementing U.N. Security Council-approved sanctions against North Korea.
The sanctions were passed in June by the Security Council, which includes Russia, after the country conducted a nuclear test. The sanctions are aimed at pushing North Korea to give up its nuclear weapons program.

To conform with the sanctions, Russian President Dmitry Medvedev on Tuesday ordered that all sales or imports of North Korean weapons and materials connected to them are forbidden.

It also bans weapons exports to the reclusive Communist country and bars transport of North Korean weapons through Russian territory, including its waters and airspace.

And according to Reuters:

Japan will extend sanctions against North Korea first imposed after the reclusive country tested a nuclear device and ballistic missiles in 2006, a senior official said on Tuesday.

The sanctions, previously set to expire on April 13, ban imports from North Korea and prohibit North Korean ships from calling at Japanese ports.

“Basically, I don’t see any reason for not extending (the sanctions),” Chief Cabinet Secretary Hirofumi Hirano told a news conference.

Asked whether the government would consider shortening the duration of the sanctions to six months from one year, Hirano said it would assess the outlook for multilateral talks that seek to persuade North Korea to roll back its nuclear program.

Japan has called for Pyongyang to return to the disarmament-for-aid talks hosted by China, in addition to pressing the country to reveal the fate of Japanese citizens abducted by North Korean agents in the 1970s and 1980s.

Japan also banned exports to the country last year although the impact was seen as being small given limited trade flows.

Read the full stories here:
Russia implements North Korea sanctions
Associated Press
3/30/2010

Japan to extend sanctions against North Korea
Reuters
Chisa Fujioka
3/31/2010

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How N.Korea Goes About Exporting Arms

Wednesday, March 10th, 2010

Choson Ilbo
3/10/2010

Curbing North Korea’s illicit arms trade is difficult since the renegade country launders containers carrying weapons three or four times, a defector who was in charge of illicit arms deals told the Chosun Ilbo on Monday.

The defector revealed that a factory in Jagang Province, which is believed to produce tractors, is the center of the communist country’s weapons production, including chemical warheads. The defector, who is under police protection, did not want his identity to be revealed fearing reprisal attacks against family members still in the North.

Foreign Forwarders Transport Weapons
Five departments of the North Korean government are involved in arms exports: the military arms production wing of the Workers’ Party, the Second Academy of Natural Sciences, the Surveillance Division of the People’s Armed Forces, Operational Department of the Workers’ Party and the Second Economic Committee. He said the Economic Committee, which is directly under the control of the powerful National Defense Commission, is the biggest.

The military arms production wing procures materials for the Yongbyon nuclear plant and North Korea’s nuclear weapons program. “The General Bureau of Atomic Energy only produces yellow cake [the seed material for higher-grade nuclear enrichment], while the arms production wing is in charge of the Yongbyon facility,” the defector said. The Second Academy of Natural Sciences exports missiles and also provides after-sales service for exported products by upgrading performance and exchanging components.

“The main client is the research center of Iran’s Revolutionary Guard, while experiments are conducted in unison,” he said. Iran successfully test-fired a rocket on Feb. 3 which is believed to have been powered by the same engine as North Korean Rodong missiles.

But international sanctions against North Korea make it difficult to export weapons by conventional means. “This is where the Surveillance Division of the People’s Armed Forces comes in,” the defector said. Its “traders,” who studied at Pyongyang University of Foreign Studies, are fluent in English and Chinese and sign deals with “forwarders” from other countries. Through this process, North Korea sends containers across the Apnok (or Yalu) River to China one third or half filled with weapons. “The forwarder who received this cargo enters a port in a third country, where the containers are filled with freight unrelated to weapons and the paperwork is completed,” he said.

These “laundered” containers are laundered again in Hong Kong, Singapore or other ports. “The containers are mixed with other cargo in those transit points. They are searched, but not thoroughly,” the defector added. “Even if customs or other officials roll their sleeves up and search for weapons, how can they possibly find the arms among the mountains of other containers headed to other countries?”

‘Tractor Factory’ Is Weapons Production Base
North Korea’s main weapons production base is Kanggye General Tractor Plant No. 26. Before the Korean War, the plant was based in Pyongyang and made Soviet-designed PPSh 41 submachine guns but has since been relocated. Over 10,000 workers there manufacture ammunition and even chemical weapons. The People’s Armed Forces is in charge of chemical weapons production. “The Bio-chemical research center affiliated with the military is located next to the Kanggye plant,” the defector said. “The toxic gases produced at the research center are loaded onto warheads manufactured at the plant.”

North Korean leader Kim Jong-il makes a point of visiting the factory two to three times a year. He last paid a visit on Dec. 9, 2009.

AK-47 Rifles and Ammunition Are Top Sellers
“Small arms ammunition are hot export items and the Second Economic Committee even built a factory in Ethiopia,” the defector said. The rugged AK-47s, which can operate flawlessly even in the sand-filled battlefields of the Middle East, are extremely popular, he said.

Anti-tank missiles are more complicated to manufacture, so the blueprints are in Russia, while North Korean factories are merely subcontractors. North Korean arms are believed to be exported to Bangladesh, Indonesia, Pakistan and the Philippines. “North Korean weapons with engines [such as tanks] are extremely poor quality, but those carrying warheads are not bad,” the defector said. Around 20 percent of the parts used to make export versions of missiles are imported. But missiles for domestic use are made using mostly North Korean-made parts, so there is a difference in performance. “North Korea tried to import Harpoon anti-ship missiles from Taiwan,” he added. “This probably has something to do with the South Korean Navy’s use of the Harpoon missiles.”

Dear Choson Ilbo: We have very good satellite imagery of Kanggye. Please tell us where the Kanggye General Tractor Plant is!  Here are three guesses as to where the plant is: guess 1, guess 2, guess 3.  Kim Jong Il has a villa in Kanggye hereHere is his private train station near Kanggye.

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