NORTH KOREANS SIGNAL NEW OPENNESS AT ENERGY

C O N F I D E N T I A L SECTION 01 OF 02 ROME 005079

SIPDIS

E.O. 12958: DECL: 10/17/2007
TAGS: PREL ENRG EAID PARM KN ENRG EAID PARM KN ITPREL
SUBJECT: NORTH KOREANS SIGNAL NEW OPENNESS AT ENERGY
CONFIDENTIAL

PAGE 02 ROME 05079 01 OF 02 171439Z
CONFERENCE IN COMO, ITALY

CLASSIFIED BY: POLMINCOUNS T. COUNTRYMAN FOR REASONS 1.5 (B) AND (D)

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SUMMARY
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1. AT A RECENT CONFERENCE IN ITALY ON NORTH KOREAN ENERGY
NEEDS, THE DPRK DELEGATION APPEARED TO SIGNAL UNUSUAL
OPENNESS. ITS PRESENCE AT A CONFERENCE WITH USG AND ROK
REPRESENTATIVES WAS ITSELF REMARKABLE, AND ITS FRANK
DISCUSSION OF SHORTCOMINGS AND REFORMS WAS MORE SO. DPRK
REPRESENTATIVES HOPED FOR BUT FAILED TO OBTAIN AID
ASSURANCES. IN A MEETING AT THE MFA, EAST ASIAN DIRECTOR
MARIO ROSSO AND INR TDYER ALLISON HOOKER SHARED INFORMATION
ABOUT THE POSITIVE VISIT BY JAPANESE PM JUNICHIRO KOIZUMI TO
THE DPRK, AS WELL AS THE USG'S AND GOI'S RESPECTIVE CONCERNS
ABOUT PROLIFERATION. ROSSO OBSERVED THAT THE DPRK'S CHARM
OFFENSIVE IS AIMED AT OBTAINING AID, PARTICULARLY FOR A
TECHNOLOGY CENTER. THIS ITSELF INDICATES MATURATION ON THE
PART OF THE REGIME, WHICH APPEARED TO BE SEEKING WAYS TO END
ITS ISOLATION. ROSSO REQUESTED ONGOING CONSULTATION WITH THE
U.S. ON THE DPRK. END SUMMARY.

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CONFERENCE PROVIDES FRANK DISCUSSION ON ENERGY, U.S. POLICY
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2. (C) INR/EAP TDYER ALLISON HOOKER AND EMBASSY ESTOFF
LORENZO MARTINI ATTENDED A COMO, ITALY CONFERENCE ON
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SEPTEMBER 19 AND 20 ENTITLED "DPR OF KOREA: UPGRADING AND
INTEGRATING ENERGY SYSTEMS." ORGANIZED BY THE LANDAU NETWORK
OF CENTRO VOLTA (LNCV) AND SUPPORTED BY THE MFA, THE
CONFERENCE WAS DESIGNED TO BRING TOGETHER NORTH AND SOUTH
KOREAN ENERGY EXPERTS WITH WESTERN COUNTERPARTS. THIS WAS NO
EASY TASK. THE ORGANIZATION'S SECRETARY GENERAL, MAURIZIO
MARTELLINI, WORKED FOR OVER A YEAR TO GET THE DPRK TO ACCEPT
HIS INVITATION. (LNCV IS AN ITALIAN POLICY THINK TANK ON
ARMS CONTROL, COUNTER-PROLIFERATION AND WMD DISARMAMENT THAT
FREQUENTLY PROVIDES CONSULTANT CONTRACTOR SERVICES TO THE
MFA. IT IS ALSO WORKING ON PROLIFERATION ISSUES IN
INDIA/PAKISTAN AND IRAN.)


3. (C) HAVING ACCEPTED, HOWEVER, THE DPRK REPRESENTATIVES
PREPARED THOROUGHLY AND BROUGHT SPECIFIC PROPOSALS BASED ON
THE LATEST RESEARCH. MORE THAN ADVICE, THEY WERE HOPING THAT
WESTERN GOVERNMENTS WOULD FIX THEIR ENERGY PROBLEMS OR AT
LEAST PROVIDE A $50,000 GOI/EU AID PACKAGE. THAT WAS NOT TO
BE. THE CONFERENCE WAS AIMED AT DISCUSSING POTENTIAL
TECHNICAL SOLUTIONS, NOT INTENSIVE ASSISTANCE. NONETHELESS,
THE DPRK REPS SHOWED AN UNUSUALLY OPEN AND FRANK DEMEANOR
BOTH IN THEIR PRESENTATIONS AND IN SIDELINE DISCUSSIONS WITH
HOOKER.


4. (C) DURING THE CONFERENCE, A NON-PROFIT AMERICAN THINK
TANK WAS THE ONLY PARTICIPANT TO RAISE THE SENSITIVE SUBJECT
OF THE DPRK'S NUCLEAR ENERGY PROGRAM AND WEAPONS
PROLIFERATION.
AT A CONCLUDING ROUNDTABLE, U.S. POLICY WAS TAKEN TO TASK FOR
DELAYING THE LIGHT WATER REACTOR PROJECT, PUSHING THE NUCLEAR
AND PROLIFERATION ISSUES, AND PROHIBITING NGO WORK ON DPRK
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ENERGY PROGRAMS.

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MFA: DPRK OPENING TO THE WORLD
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5. IN A SEPTEMBER 24 MEETING WITH MFA DIRECTOR FOR EAST
ASIAN AFFAIRS RENZO MARIO ROSSO, HOOKER AND ROSSO EXCHANGED
INFORMATION ABOUT THE OPENNESS DISPLAYED BY THE DPRK AT THE
CONFERENCE. HOOKER NOTED THAT KIM SONG, THE DELEGATION'S
HEAD, SET THE EXAMPLE FOR AN UNUSUALLY OPEN DIALOGUE BY
SPEAKING FRANKLY ABOUT THE DILAPIDATED CONDITION OF THE DPRK
INFRASTRUCTURE. EACH DPRK PRESENTER DISCUSSED HIS/HER
RESEARCH FREELY AND ANSWERED QUESTIONS DIRECTLY, WITHOUT
WAITING FOR GUIDANCE. MOREOVER, THE DELEGATION SPOKE OPENLY
ABOUT ECONOMIC PROBLEMS, USING THE WORD "REFORM," PERHAPS FOR
THE FIRST TIME, IN PUBLIC.


6. (C) ROSSO, WHO HAD NOT ATTENDED THE CONFERENCE, SHARED
INFORMATION WITH HOOKER FROM THE CONFIDENTIAL READOUT HE HAD
RECEIVED FROM CONFERENCE ORGANIZER MARTELLINI. THE NORTH
KOREANS OPPOSED THE CONGRESSIONAL MANDATE LINKING THE
BUILDING OF LIGHT-WATER REACTORS TO NUCLEAR INSPECTIONS BY
THE IAEA. NONETHELESS, THEY SEEMED READY TO ACCEPT THE
INSPECTORS. HOOKER NOTED THAT IN HER SIDE CONVERSATIONS WITH
THE DELEGATION, SHE HEARD THE DPRK WAS LOOKING FOR ASSURANCES

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ACTION EUR-00

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FM AMEMBASSY ROME
TO SECSTATE WASHDC 6387
INFO AMEMBASSY BEIJING
AMEMBASSY CANBERRA
AMEMBASSY SEOUL
AMEMBASSY TOKYO
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AMCONSUL MILAN
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C O N F I D E N T I A L SECTION 02 OF 02 ROME 005079

SIPDIS

E.O. 12958: DECL: 10/17/2007
TAGS: PREL ENRG EAID PARM KN ENRG EAID PARM KN ITPREL
CONFIDENTIAL

PAGE 02 ROME 05079 02 OF 02 171439Z
SUBJECT: NORTH KOREANS SIGNAL NEW OPENNESS AT ENERGY
CONFERENCE IN COMO, ITALY

THAT AFTER INSPECTIONS THE PROJECT WOULD BE COMPLETED WITHOUT
FURTHER CONDITIONS. HER NORTH KOREAN INTERLOCUTORS ALSO
DISCUSSED INTERNAL OPPOSITION TO REFORM, AND THEIR HOPE FOR
RAPID PROGRESS ON THE ISSUE IN ORDER TO OVERCOME OBJECTIONS
RAISED BY HARD-LINERS.


7. (C) RELATIONS BETWEEN THE DPRK AND JAPAN WERE ON THE
UPSWING AFTER THE VISIT OF KOIZUMI, ROSSO STATED. IN THE
OFFING WERE NEW COMMERCIAL DEALS, INFORMATION ABOUT JAPANESE
ABDUCTEES, AND FURTHER DISCUSSION OF THE EXTRADITION TO JAPAN
OF JAPANESE RED ARMY (JRA) MEMBERS. ON THE MARGINS OF THE
CONFERENCE, DELEGATION MEMBERS HAD EXPRESSED THEIR HOPE THAT
THE RETURN OF JRA MEMBERS WOULD RESULT IN THE REMOVAL OF THE
DPRK FROM THE U.S. LIST OF STATE SPONSORS OF TERRORISM.

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WHAT IS PYONGYANG AFTER--AND WHAT WILL IT DO TO GET IT?
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8. (C) ACCORDING TO ROSSO, THE DPRK IS SEEKING AID AND
TECHNICAL ASSISTANCE FOR ENERGY AND ENVIRONMENTAL MANAGEMENT,
AS WELL AS THE ACTIVATION OF A SUBSTANTIAL EU SCHOLARSHIP
PROGRAM FOR RESEARCHERS. IN PARTICULAR, PYONGYANG WANTS
FUNDING TO BUILD A PLANNED INFORMATION TECHNOLOGY CENTER.


9. (C) IT APPEARS THAT TO OBTAIN THESE, NORTH KOREA MAY BE
SEEKING TO ASSUAGE INTERNATIONAL CONCERNS ABOUT WEAPONS
PROLIFERATION. ROSSO RECALLED THAT DURING KOIZUMI'S VISIT,
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THE DPRK ANNOUNCED A MORATORIUM AFTER 2003 ON ALL MISSILE
PRODUCTION AND TESTING. IN EXCHANGE FOR MODERNIZATION AID,
HE BELIEVES, THE DPRK IS READY TO BAN THE PRODUCTION AND
EXPORT OF MEDIUM AND LONG-RANGE BALLISTIC MISSILES. HOWEVER,
HOOKER NOTED THAT THE USG IS CURRENTLY NOT SUPPORTIVE OF
PROVIDING COMPENSATION FOR ASSURANCES THAT MISSILE PRODUCTION
WILL CEASE, AND SAID THAT SHE WAS UNAWARE OF ANY USG PLANS TO
ASSIST IN BUILDING THE TECHNOLOGY CENTER.

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RESPONDING TO THE NEW AND IMPROVED DPRK
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10. (C) ROSSO AGREED THAT THE TECHNOLOGY CENTER IDEA WAS
"TOO NEW" BUT OBSERVED THAT THE DIFFUSION OF TECHNOLOGY WAS
NECESSARY FOR POLITICAL AND ECONOMIC MODERNIZATION. THE FACT
THAT PYONGYANG WAS PURSUING THIS APPROACH INDICATED THAT
EITHER THE REGIME WAS MORE CONFIDENT THAN BEFORE OR HAD
REALIZED THAT TECHNOLOGY WAS IN ITS INTERESTS. HOOKER
OBSERVED THAT OTHER COUNTRIES, SUCH AS RUSSIA, WERE
INTERESTED IN VARIOUS DEVELOPMENT PROJECTS FOR NORTH KOREA
BUT FINDING MONEY FOR THOSE PROJECTS WAS A MAJOR PROBLEM.
HOWEVER, BECAUSE NORTH KOREA HAD BEEN WILLING TO RESPOND TO
JAPANESE CONCERNS ABOUT ABDUCTEES, JAPAN MIGHT BE WILLING TO
PUSH THE ASIAN DEVELOPMENT BANK TO FUND DPRK PROJECTS.


11. (C) ROSSO STATED THAT HE WAS INTERESTED IN PERIODICALLY
CONSULTING AND COORDINATING POLICIES ON THE DPRK, GIVING
HOOKER AN OPENING TO ASK WHY NORTH KOREA WAS IMPORTANT TO
ITALY. GIVING HIS "PERSONAL OPINION," ROSSO REPLIED THAT
ORIGINALLY THE IDEA OF NEW DIPLOMATIC CHANNELS (I.E.,
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OFFICIALLY RECOGNIZING THE DPRK) WAS A BIPARTISAN ONE LED BY
THE FORMER CENTER-LEFT FONMIN, LAMBERTO DINI. HOWEVER, THE
CURRENT CENTER-RIGHT GOVERNMENT WAS COOLER TO NORTH KOREA,
CONCERNED ABOUT CONTRADICTING THE U.S. STAND ON THE "AXIS OF
EVIL," AND THUS NOT PARTICULARLY ENGAGED. AN MFA OFFICER WHO
JOINED THE MEETING BRIEFLY ADDED THAT EUROPE WAS TRYING TO
FIND A STRATEGY IN RESPONSE TO THAT DECLARATION. THE
QUESTION WAS WHETHER TO TRY TO BALANCE PRESIDENT BUSH'S
APPROACH OR SUPPORT IT. ROSSO AGREED THAT THE EU POLICY WAS
IN FLUX. IN THE PAST, THE EU'S ROLE WAS TO PURSUE DIALOGUE
WITH THE DPRK. "IT WAS THE BEST WE COULD DO AT THE TIME," HE
SAID.


12. (C) IN CONTRAST TO THE PERIOD OF OVER A YEAR IN WHICH
THE DPRK SITUATION WAS PRACTICALLY STUCK, ROSSO SUMMARIZED,
NOW NORTH KOREA WAS GIVING POSITIVE SIGNALS AND SEEKING
DIALOGUE AND REESTABLISHED LINKS WITH SOUTH KOREA. WHILE
THIS AND KOIZUMI'S VISIT SUGGEST A THAWING, SETBACKS COULD
STILL EMERGE. HOOKER AGREED, REMEMBERING THE NAVAL CLASH
WITH SOUTH KOREA ON JUNE 29 THAT PROBABLY DISRUPTED THE
DPRK'S PLANS TO ANNOUNCE CHANGES. SHE STATED THAT POLICY
MAKERS HAVE BEEN WATCHING WITH INTEREST THE RECENT CHANGES IN
THE DPRK AND CONSIDERING HOW TO MOVE AHEAD WITH US-DPRK
RELATIONS. NOTING THAT THE GOI AND PRC HAD RECENTLY AGREED
TO SHARE INFORMATION ON THE DPRK, ROSSO REPEATED THAT HE
HOPES TO CONTINUE CONSULTATIONS WITH US AS WELL.
SEMBLER

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2002ROME05079 - Classification: CONFIDENTIAL