EUROPEAN COMMISSION PREPARED TO INCREASE

C O N F I D E N T I A L SECTION 01 OF 02 BRUSSELS 001327

SIPDIS

SIPDIS

E.O. 12958: DECL: 04/20/2017
TAGS: PREL EAID KNNP EUN JA KN KS
SUBJECT: EUROPEAN COMMISSION PREPARED TO INCREASE
ASSISTANCE TO DPRK IF COMMITMENTS ARE MET


Classified By: ENLARGEMENT UNIT CHIEF VINCENT CARVER; REASONS 1.5 (B/D)
.

SUMMARY
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1. (C) EAP PDAS Stephens discussed DPRK with European
Commission (EC) Director for Korea/Japan Alan Seatter April
17, outlining developments since the February 13 agreement.
Seatter noted that the EU will increase its assistance,
particularly regarding food security, if the DPRK implements
its international obligations. Stephens welcomed EU interest
and agreed to stay in close touch as the six-party process
moves forward. Seatter also noted that the EU is about to
open free trade agreement negotiations with Seoul. Seatter
will be in Washington in early May and would welcome further
discussion on DPRK. PDAS Stephens' COASI discussions with
the EU reported SEPTEL. END SUMMARY


2. (C) EAP PDAS Kathleen Stephens reviewed the DPRK with EC
Director for (inter alia) Korea and Japan Alan Seatter April
17 in Brussels. Stephens outlined the state of play in
implementing the steps called for in the February 13
agreement, noting that while there had been some positive
steps, including IAEA Director El Baradei's visit to
Pyongyang and the initial meetings of the five working
groups, the DPRK had yet to shut down and seal the Yongbyon
facility. The BDA banking issue had turned out to be quite
complex, but is now resolved. DPRK rhetoric was relatively
positive, but the North needed to act now to get the IAEA
team into the DPRK and start shutting down Yongbyon. With
the initial actions completed, we supported a ministerial
soon after. The next phase -- a complete declaration of the
DPRK's nuclear programs and their disablement -- would be
even more challenging. But the U.S. remained committed to
the complete implementation of the September 2005 joint
statement.

EU SUPPORT SIX-PARTY PROCESS; TAKING CAUTIOUS APPROACH
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3. (C) Seatter stressed that the EC is taking a cautious
approach toward the DPRK. Brussels wanted to "send a signal"
by sending a delegation to Pyongyang shortly after the
February 13 agreement was reached. Its main message was that
the EU will take a constructive approach to the DPRK provided
that Pyongyang delivers on its commitments "to the U.S. and
others, particularly on denuclearization." According to
Seatter, the delegation told North Korean officials that the
EU supports the denuclearization of the Korean peninsula and
wants to promote respect for human rights in the North. The
delegation also reviewed the economic, social, and
humanitarian situation with an eye to what the EU might do to
help. Seatter observed that the North Koreans had appeared "a
bit more open" on denuclearization and did not revert to the
"usual rubbish" on human rights.

COMMISSION: MORE FOCUS ON FOOD SUPPLY, ENERGY EFFICIENCY
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4. (C) Seatter outlined current EU assistance to the North:
eight million Euros of humanitarian aid and 15 million Euros
for on-going projects, including small scale economic
seminars, most of which is administered by NGOs and overseen
by a couple of EC contractors (there is no EC official
resident in DPRK). Seatter added that there is no EC direct
aid to any public DPRK authority. He stressed that the EC
will phase out its purely humanitarian aid and shift to
programs aimed at securing a steady food supply for DPRK.
Unlike the World Food Program, the EC does not see a looming
food crisis in the North, he explained.


5. (C) Turning to potential further assistance, Seatter
noted that the EU is reviewing providing technical support
for energy efficiency in the North. "We've been cautious
because we don't want to send any false signals," he
observed. Member states are cautious as well, he added, and
will not move until the right time. The EC might proceed
with technical energy efficiency support after the North has
implemented its commitments. The EU is also reviewing
supporting the IAEA's work, likely with financial assistance.
PDAS Stephens noted that the work of the six-party economic
and energy working group, chaired by the ROK, was at a very
early stage. The first shipment of heavy fuel oil from the
ROK was on hold pending the DPRK's fulfilling of its
commitment to shut down Yongbyon. But Stephens noted the
EU's active participation in past years in multilateral
projects in the DPRK, and she welcomed EC interest in aiding
the North's energy sector and helping with IAEA funding once

BRUSSELS 00001327 002.2 OF 002


the DPRK meets its obligations.

RELATED ISSUES
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6. (SBU) Seatter explained that the EU is about to begin
negotiations with Seoul on a free trade agreement. He noted
that negotiations may include political topics, including
WMD, non-proliferation, human rights, and democratization.
In principle, these issues should not present a problem for
the South, he said. Seoul may raise DPRK (Kaesong) as well.
Stephens explained the approach taken in the US-ROK FTA on
Kaesong.


7. (U) Seatter noted that he will be in Washington in early
May and would welcome a more detailed exchange on DPRK.


8. (U) PDAS Stephens has cleared this message.
GRAY
.