AMBASSADORS TOUR KAESONG INDUSTRIAL COMPLEX

C O N F I D E N T I A L SEOUL 001968 SIPDIS SIPDIS E.O. 12958: DECL: 09/14/2014 TAGS: PREL PREF PGOV KS KN SUBJECT: AMBASSADORS TOUR KAESONG INDUSTRIAL COMPLEX REF: A. SEOUL 1773 ¶B. SEOUL 963 ¶C. SEOUL 1266 ¶D. SEOUL 1947 Classified By: Amb. Alexander R. Vershbow. Reasons 1.4(b/d). SUMMARY -------------- ¶1. (C) Although Kaesong Industrial Complex (KIC) tourism has not yet become as routine as the USO's twice-weekly trip to the DMZ, the visits themselves are developing along a familiar pattern. On June 12, the Ambassador joined a large delegation of ambassadors and other high-level officials who toured the KIC in an excursion organized by the Ministry of Foreign Affairs and Trade (MOFAT) and hosted by Foreign Minister Ban Ki-moon (Ref A). In a visit substantially similar to those reported previously (Ref B, C, D),the visitors received a briefing on Kaesong operations, toured two factories -- both bright, modern and clean -- and surveyed the sprawling construction site. In a sidebar conversation orchestrated by Foreign Minister Ban, the Ambassador expressed to a North Korean official that it was useful to see Kaesong first-hand, but stressed that transparency was important in addressing questions about labor conditions and wages at Kaesong. END SUMMARY. ON THE BEATEN PATH -------------- ¶2. (SBU) Three buses carrying approximately 80 members of the diplomatic corps left Seoul the morning of June 12 to visit the KIC. Representatives of MOFAT, the Ministry of Unification, the UNHCR, and other international organizations were also present. Russia, China and Japan did not participate. The border crossing was, as in previous visits, perfunctory. The DPRK border authorities merely checked visitors against a list of names and photographs. ¶3. (SBU) Kim Dong-keun, Chairman and President of the Kaesong Industrial district Management Committee and Foreign Minister Ban delivered welcoming remarks. Ban said in his address that the ROKG was pushing for increased transparency and direct payment of wages. Kim Hyun-ju, a North Korean interpreter for the KIC, then delivered her now familiar PowerPoint presentation on the development of KIC and its expansive vision of the future (Refs B, C, D). ¶4. (SBU) The group toured Bucheon wire factory, which produces wire assemblies for home appliances and motorcycles, and Taesung Hata, which produces cosmetic packaging materials. Embassy officials have visited these facilities before and, as reported reftel, the factories were clean and bright, staffed with well-clothed, well-fed and apparently content North Korean workers. In casual conversation along the way, the Ambassador sidestepped a question posed to him -- in the presence of press and other tour participants -- regarding human rights concerns at KIC. ¶5. (SBU) Following the factory tour, the group visited the Hyundai Asan Briefing Center for a presentation on the future vision of KIC (Ref D). The speaker set forth ambitious plans for the complex, complete with hotels, malls and apartments for some of the 700,000 anticipated South and North Korean workers. While the vast construction site still seemed far-removed from Hyundai Asan's architectural model, the scope was impressive. SIDEBAR WITH DPRK OFFICIAL -------------- ¶6. (C) As the other members of the delegation were boarding buses, Minister Ban pulled aside the Ambassador for a short discussion with Park Chul-soo, a Pyongyang-based official involved with the KIC. With interpretation help from Minister Ban -- interpreter Kim appeared somewhat unprepared when not working from her script -- Park asked the Ambassador his impressions of the KIC, his advice on how to make it more effective, and whether the U.S. would support the project. ¶7. (C) The Ambassador replied that he appreciated the opportunity to visit and stressed that the U.S. would like to see the barriers between the two Koreas overcome. The Ambassador pointed to the USG's granting of operating licenses to KT Telecom as an example of USG commitment to the endeavor. However, there were still many unanswered questions about the KIC, particularly regarding wages and working conditions, and greater transparency was needed. The Ambassador said that the tour was useful and that he would report back to Washington on his findings. The Ambassador said that notwithstanding the very serious pending problems between Washington and Pyongyang, the U.S. did not have a hostile policy toward North Korea and hoped some day to develop a more normal relationship with the DPRK. COMMENT -------------- ¶8. (C) This was the Embassy's fourth opportunity to visit the KIC since March. We are, of course, not seeing the DPRK. Rather, we are observing how thousands of North Koreans work at Taesung Hata, Bucheon, Shinwon, and the other factories we have visited. If Hyundai Asan's development plans are even partially realized, it could become the reality for tens of thousands more. Working conditions at the KIC factories must certainly be better than the daily toil elsewhere in the DPRK, and the perks the workers receive -- especially decent food for lunch and to take home -- need to be factored into any assessment of the wage issue. Moreover, the ROKG appears committed to making direct wage payment possible. Meanwhile, the KIC workers are becoming accustomed to South Korean factory conditions and are even becoming used to foreigners strolling through their workplace. VERSHBOW