S/E LEFKOWITZ'S REMARKS ON KAESONG PROMPT

C O N F I D E N T I A L SEOUL 001089 SIPDIS SIPDIS NSC FOR CHA AFTER KOREAN REUNIFICATION E.O. 12958: DECL: (###) TAGS: PREL PGOV PHUM EAID KN KS SUBJECT: S/E LEFKOWITZ'S REMARKS ON KAESONG PROMPT UNUSUALLY STRONG REACTION FROM ROKG Classified By: CDA JOSEPH Y. YUN. REASONS 1.4 (B, D). SUMMARY -------------- ¶1. (C) Recent South Korean press reports drew attention to Special Envoy Jay Lefkowitz's March 30 remarks at the American Enterprise Institute (AEI) calling for independent monitoring of labor conditions at the Kaesong Industrial Complex (KIC),and the subsequent response from Assistant Unification Minister Lee Kwan-sei, who asserted that the Special Envoy's remarks were "inappropriate" and "misleading." Lee, in an impromptu March 31 press conference, strongly argued that labor conditions at KIC fully met standards set by the International Labor Organization (ILO) and that wages paid to the North Korean workers at KIC were greater than those prevailing in the DPRK. A Ministry of Unification official confirmed to poloff on April 3 that press coverage of Lee's comments were accurate, and represented a deliberate, considered effort to rebut SE Lefkowitz's remarks. He added that visiting ROK officials from the Blue House and MOU would raise the issue again with U.S. counterparts during their April 17-19 visit to Washington. COMMENT: Assistant Minister Lee's remarks are undoubtedly the most explicit criticism of a U.S. official from the ROKG that we have encountered in recent years. The ROKG considers the Kaesong Industrial Complex as the centerpiece of its engagement policy with the DPRK and will react strongly to any perceived criticism of the project, however legitimate. END COMMENT AND SUMMARY. PRESS COVERAGE OF S/E LEFKOWITZ'S AEI REMARKS -------------- ¶2. (U) Several South Korean media outlets focused on Special Envoy for North Korean Human Rights Jay Lefkowitz's comments on the Kaesong Industrial Complex (KIC) in his March 30 remarks at the America Enterprise Institute (AEI). The ROK press reported that the Special Envoy -- stressing that North Korean workers at KIC received less than USD 2 per day in wages, and that the DPRK regime confiscated large portions of their wages -- argued in favor of having the International Labor Organization (ILO) or other independent parties monitor the labor conditions at KIC and report their findings to the UN. REACTION FROM MOU STRESSES GOOD WORKING CONDITIONS -------------- -------------- ¶3. (U) Subsequently, on April 1, the press reported that Lee Kwan-sei, Assistant Minister for Unification Policy and Public Affairs, Ministry of Unification (MOU),stated in a March 31 press conference that the ROKG regretted Lefkowitz's "inappropriate" and "misleading" remarks, and that the remarks could undermine the ROK's goal of influencing the DPRK to open and transform its economy through continued engagement with the DPRK. The news reports quoted Lee saying, "an important figure of the U.S. Government has made comments that can harm the image of our companies operating in the KIC without confirming, but rather distorting, the facts about North Korean workers' ages and working conditions." According to the press, Lee also pointed out that the monthly wages of USD 57.50 paid to each North Korean worker at KIC was substantially higher than that paid anywhere else in the DPRK, and competitive with the wages of industrial workers in other socialist countries in Asia. He added that working hours and paid leaves and other working conditions had all met ILO standards. ROKG TO RAISE ISSUE IN WASHINGTON APRIL 17-19 -------------- ¶4. (C) On April 3, Kim Jung-ro, Deputy Director of International Cooperation, MOU, told poloff that press coverage of Lee's remarks were accurate. Noting that Minister of Unification Lee Jong-seok and other high-level MOU officials had gathered immediately after Lefkowitz's remarks at AEI to discuss the next steps for the ROKG, Kim said senior officials ultimately decided it would be inappropriate for Minister Lee to comment directly on the issue. Assistant Minister Lee Kwan-sei, therefore, called an impromptu press conference on March 31 to state unequivocally the ROKG's position. Kim, reminding poloff of the planned April 17-19 visit to Washington of Cho Myung-gun, Secretary to the President for National Security Policy and Director General Koh Gyung-bin of the KIC Project Office, said Cho and Koh would vigorously attempt to dispel misperceptions concerning KIC and its role in inter-Korean affairs in meetings with USG officials and at the April 18 conference hosted by the Korea Economic Institute (KEI). YUN