DG KANG ON ROK REACTION TO UNSCR 1695 NON-PAPER

C O N F I D E N T I A L SEOUL 003128

SIPDIS

SIPDIS

E.O. 12958: DECL: 09/06/2015
TAGS: ECON JA KN KS OVIP PREL
SUBJECT: DG KANG ON ROK REACTION TO UNSCR 1695 NON-PAPER

REF: SECSTATE 136495

Classified By: POL Joseph Y. Yun. Reasons 1.4 (b/d).


1. (C) SUMMARY: In a September 11 meeting requested by the
DG for International Affairs Kang Kyung-hwa, she conveyed
the ROK's position on the reftel demarche paper on UNSCR

1695. DG Kang said that the ROK thought that UNSCR 1695 was
an important resolution that they would faithfully implement.
Still, as South Korea had neither regular trade, nor bank
accounts with the North, the ROKG was of the view that the
resolution had little or no practical implications for the
ROK. She also noted that existing rules and regulations
government trade and financial flows between the two Koreas
were very strict and fully enforced. Kang also took the
opportunity to raise several concerns about the U.S.
non-paper, which the ROKG believed went beyond the UNSCR

1695. Kang opined that actions on bank accounts suspected of
"indirectly" supporting North Korean WMD or missile programs
went beyond the scope of the UNSCR 1695. Similarly, she also
singled out our language on "mandatory" inspection of all
North Korean ships as
a maximalist interpretation of the resolution. END SUMMARY.

ROK RESPONSE TO U.S. NON-PAPER ON UNSCR 1695
--------------


2. (C) On September 11, MOFAT DG Kang Kyung-hwa asked to see
POL M/C to convey the ROK's responses to Reftel demarche on
U.S. views of UNSCR 1695. Kang said that the basic ROKG
position was that it supported the resolution and would
faithfully implement it in order to prevent transfer to North
Korea of any products related to WMD and missiles. In light
of the special nature of the relationship between the two
Koreas, Kang said the ROK had "several suggestions" regarding
the U.S. non-paper.


3. (C) Regarding control of goods and resources related to
WMD, Kang said that the ROK was in a position of already
enforcing the relevant measures. She noted that the ROK was
a member of five international regimes on the control of
these goods and resources; it was also a country with a
strict export regime currently in place. All of these
regulations were being applied to goods shipped or transiting
the ROK.


4. (C) On the financial side, Kang said that freezing asset
were possible under current laws and regulations, but that
there was nothing in place to prohibit North Koreans from
opening accounts in the South. She also emphasized that
South Korean financial institutions were vigilantly enforcing
relevant international regulations and practices against
North Korean missile and WMD financing; many of these were
practices recommended by the U.S. Treasury's OFAC. For
example, the thirteen entities designated under the E.O.
13822 were all disseminated to South Korean financial
institutions.


5. (C) Regarding the prevention or transfer by sea or air of
any materials related to WMD or missiles to North Korea, Kang
said that North Korean vessels do not have the right of
innocent passage currently in South Korean waters.
Therefore, there was little chance the sea or air would be
used for transfer of WMD or missile related materials.
Moreover, according to the inter-Korea maritime agreement
that went into place on August 1, 2005, it became possible to
inspect DPRK ships.


6. (C) On dual-use, Kang said there were strict regulations
on passage of dual-use materials to North Korea and all
products are strictly vetted before being shipped to North
Korea with any possible dual use.

ROK CONCERNS
--------------


7. (C) Kang said that as a general observation, the U.S.
non-paper seemed to be taking a "maximalist" position on the
UNSCR 1695. For example, she said that on paragraph four,
page two regarding increased vigilance on financial activity
that could indirectly support WMD or missile development,
Kang said that the phrase "indirect" support could be widely
expanded and went beyond the mandate of the Resolution.
Similarly, the ROK believed that "mandatory and in-depth
inspections" without reasonable cause went beyond the UNSCR

1695.


8. (C) Kang closed the meeting by observing that the ROKG
was prepared to adopt new rules and regulations consistent
with the UNSCR 1695.
VERSHBOW