AMBASSADOR'S JULY 21 MEETING WITH PRESIDENT ROH'S

C O N F I D E N T I A L SEOUL 002461 SIPDIS SIPDIS E.O. 12958: DECL: 12/18/2015 TAGS: PREL ETRD MNUC KS KN SUBJECT: AMBASSADOR'S JULY 21 MEETING WITH PRESIDENT ROH'S CHIEF OF STAFF Classified By: Amb. Alexander Vershbow. Reasons 1.4 (b/d). ¶1. (C) Summary: On July 21, the Ambassador and Lee Byung-wan, President Roh's Chief of Staff, held a cordial and wide-ranging discussion on USG efforts to help victims of recent flooding, the need for a diplomatic solution to the DPRK missile crisis, presentation of a united front in the face of the media, and the dispute over pharmaceuticals in the FTA negotiations. The two met on Jeju Island where they both gave speeches at a Korean Chamber of Commerce and Industry-sponsored FTA forum for CEOs of small and medium-sized companies. END SUMMARY. USG SUPPORT FOR KOREAN FLOOD VICTIMS -------------- ¶2. (U) The Ambassador described the extensive flooding he witnessed first-hand during his trip the previous weekend to hard-hit Gangwon Province in the Northeast. Lee lamented the loss of tourism revenue in the popular vacation destination, and urged the Ambassador to return to the region as a show of support. The Ambassador spoke of the USG's $50,000 donation to the Korean Red Cross, which will be used to provide emergency relief kits to flood victims. This donation is to help victims as well as show gratitude to the Korean people for their generosity in the wake of Hurricane Katrina. Lee went on to express concern for flood victims in North Korea, to which the Ambassador stated his hope that political problems would not interfere with humanitarian relief. DPRK -------------- ¶3. (C) The Ambassador emphasized his hope that the upcoming meeting of representatives from the Six Party countries in Kuala Lumpur would steer North Korea toward a diplomatic path. Lee agreed and downplayed media portrayals of U.S.-ROK rifts over the DPRK. The Ambassador regretted the cancellation of Secretary Rice's visit in part because, with China unable to alter DPRK behavior, the U.S. and Korea may now have the key role in the Six Party Talks. U.S.-ROK RELATIONSHIP AS PORTRAYED BY THE MEDIA -------------- -- ¶4. (C) Citing a headline on the front page of today's The Korea Times, 'Korea-U.S Alliance Cracking,' the Ambassador and Lee agreed that it was important for both governments to ensure the public had accurate information about how the two governments are cooperating. Citing the need for a consistent message to the media, the Ambassador said that President Roh had, on occasion, made statements to the press that, while aimed at domestic audiences or Japan, created a negative impression in Washington. He emphasized that both the U.S. and Korea needed to consider how their public remarks could be perceived given that all media is global. Lee's reply emphasized Korea's sensitivity regarding Japan's historic role on the peninsula. The Ambassador said Korea, Japan and the U.S., as democracies, must work especially closely on the challenges in the region, notwithstanding legitimate historical grievances. He also mentioned that Prime Minister Koizumi's recent comments on North Korea have been relatively moderate and that Japan's fall change of leadership could provide new opportunities for strengthening the Korea-Japan relationship. FTA - PHARMACEUTICALS AND PROTESTS -------------- ¶5. (C) While the Ambassador described the second round of the FTA negotiations as successful overall, he said the Ministry of Health and Welfare's plan to publish guidelines on a new pharmaceutical pricing system was worrisome. U.S. pharmaceutical companies saw the need for reform in Korea's healthcare system, but there is concern that a move to the 'positive list' system, without agreeing on the details in the FTA negotiations, will be disproportionately detrimental to foreign companies and limit Korean consumers' ability to obtain the best new drugs at fair prices. Lee elusively stated that while we may have a difference of opinion, we agree on equality of opportunity in principle, and stressed his hope that the two sides will reach a mutually beneficial agreement. Lee also reiterated Roh's desire to see the FTA concluded successfully. ¶6. (C) Upon hearing of the Ambassador's inability to attend a dinner at FM Ban's house due to anti-FTA protest traffic, Lee said that the ROKG had anticipated the opposition to the FTA. He described Korea's pursuit of a KORUS FTA as a move "from a market economy to an advanced market economy," and said difficulties were inevitable. He pledged ROKG advocacy for the FTA, and said that Korea, as the only country in Asia in which almost half of all citizens were Christian, had shown itself to be extremely flexible in adapting to change. VERSHBOW