GOVERNOR RICHARDSON AND FORMER SECRETARY PRINCIPI

UNCLAS SEOUL 001112

SIPDIS

SIPDIS
SENSITIVE

E.O. 12958: N/A
TAGS: PGOV PREL MUNC KS KN
SUBJECT: GOVERNOR RICHARDSON AND FORMER SECRETARY PRINCIPI
VISIT SEOUL

REF: SEOUL 1078


1. (SBU) SUMMARY: During an April 11-12 visit to Seoul, New
Mexico Governor Bill Richardson and former Secretary of
Veteran's Affairs Principi noted that the DPRK had been
cooperative in facilitating the transfer of the remains of
servicemen thought to have died during the Korean War. The
Richardson-Principi delegation also conveyed its view that
the DPRK was willing to move forward on the February 13
Initial Actions agreement following resolution of the Banco
Delta Asia (BDA) issue. In Seoul on April 11, the delegation
met with ROK Foreign Minister Song Min-soon and Unification
Minister Lee Jae-joung. On April 12, the delegation met with
President Roh Moo-hyun (reftel). END SUMMARY.

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RETURN OF REMAINS
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2. (SBU) On April 11, after crossing the Military
Demarcation Line into South Korea from North Korea, New
Mexico Governor Bill Richardson and former Secretary of
Veteran's Affairs Anthony Principi met separately with
Foreign Minister Song Min-soon and Unification Minister Lee
Jae-joung. Richardson noted that the delegation's primary
reason for visiting the DPRK was to facilitate the return of
remains of missing American servicemen thought to have
perished during the Korean War. To this extent, Richardson
explained, the DPRK had made a goodwill gesture in returning
six sets of remains. It was made clear, however, that the
delegation's trip to the DPRK and the return of the six
remains did not indicate a resumption of the remains recovery
project, which needed to be discussed in the context of
progress of Six-Party Talks, he said. Richardson said that
the most significant difference from his previous five visits
to North Korea was that there was more commercial activity in
Pyongyang this time. Former Secretary Principi added that
the bipartisan delegation's mission was important to the
families of the fallen soldiers and also to help heal the
wounds of war between the United States and North Korea.


3. (SBU) Unification Minister Lee Jae-joung described the
return of the remains as a success. It would not only help
improve U.S.-DPRK relations, but the ROKG hoped to build on
it in April 10-12 ROK-DPRK Red Cross talks to discuss the
ROK's own POW and MIA concerns. Lee said that during the Red
Cross talks the ROKG would deliver two messages: (1) the USG
was doing its part on BDA, so the DPRK should respond
positively; and (2) it was important for all sides to
implement the February 13 agreement. Lee added that he hoped
that the bipartisan nature of the delegation would play a
role in helping to resolve the DPRK nuclear issue and bring
peace to the Peninsula.

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DPRK INTENDS TO COMPLY WITH 2/13 AGREEMENT
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4. (SBU) Richardson shared his impression that the North
Koreans were serious about denuclearizing, but they were
being petty and difficult about the Banco Delta Asia (BDA)
issue. In particular, the North Koreans had welcomed the
announcement by the U.S. Treasury that DPRK accounts in BDA
had been unblocked, but they expected more still to be done,
for instance, having the money hand-delivered to them. They
did, however, reaffirm their commitment to the February 13
agreement and told Richardson that they were ready to invite
IAEA inspectors into the DPRK "the next day" after the BDA
funds were returned.


5. (SBU) Principi reiterated that DPRK officials during the
delegation's visit expressed a commitment to the Six-Party
Talks and reaffirmed that they would fulfill denuclearization
obligations once BDA was resolved. Principi said that A/S
Hill had done an extraordinary job in helping to resolve the
BDA issue, but now the ball was in the DPRK's court.
Principi said he departed the DPRK with a slight sense of
optimism, adding that now sufficient resolve, focus, and
discipline were needed to succeed.


6. (SBU) Song agreed with Richardson's impression that the
North Koreans were serious about their intent to comply with
the February 13 agreement. On BDA, he stressed that the

biggest concern for the North Koreans was their legitimacy as
a member of the international banking community, rather than
the issue of the USD 25 million itself. Song speculated that
there seemed to be a communication problem within North Korea
about how to proceed. In the past, DPRK decisions have been
made very "abruptly," so he thought that a decision to move
forward could come anytime. Still, Song agreed that the ball
was now in the North Korean's court; now that BDA funds were
unfrozen, they had to take action. Song said that it was
premature to think about what course of action the North
Koreans would take next.

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NORTH-SOUTH RELATIONS
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7. (SBU) Richardson told Unification Minister Lee that after
six visits to the DPRK, he found North Korean leadership to
be isolated and unpredictable. What would help the DPRK
better understand the importance of human rights and family
reunions was more contact with the ROK. We needed diplomacy
in the Six-Party Talks and engagement with the DPRK to move
beyond the Armistice Agreement. It was his impression that
the DPRK saw its relationship with the ROKG as better than
with other Six-Party members, so the ROKG role in encouraging
the DPRK to denuclearize and reform was key. He suggested
that, perhaps, the ROKG should do more to address rural
poverty in the DPRK and to increase people-to-people
exchanges. The ROKG should think about what dramatic step it
could take to help the DPRK, he said.


8. (SBU) Lee said that he agreed "100 percent" with the
Governor's opinion. The Six-Party Talks and North-South
dialogue were like two wheels that turned together. At times
the Six-Party Talks could help North-South dialogue and at
times North-South dialogue could help propel the Six-Party
Talks. The ROKG had a three-prong approach to improving
relations with the DPRK. First, the ROKG was supporting
North-South dialogue in various cultural, social, and
humanitarian fields. Second, the ROKG supported economic
cooperation, as in the Kaesong Industrial Complex that would
teach North Koreans about capitalism and the market system.
Finally, the ROKG supported joint programs, such as visits of
the DPRK youth soccer teams, the DPRK taekwondo team, and
delegations to commemorate the June 2000 inter-Korean summit
and August 15 Liberation Day. Lee himself was also committed
to improving DPRK agriculture. Ten years ago, before he
became Unification Minister, Lee said he had been involved in
farmer-to-farmer agricultural programs, such as seed
potatoes, to help DPRK rural sectors. Now, as minister, Lee
supported giving the DPRK fertilizer aid to help the DPRK
raise its agricultural yields.


9. (SBU) On the issue of a second North-South summit, Song
said that the ROKG principle was firm: holding a summit "for
the sake" of holding a summit was inadvisable given ongoing
Six-Party Talks and the situation on the Korean Peninsula.
Rather, the ROKG would pursue a summit only if real progress
in inter-Korean relations and denuclearization of the North
could be realistically expected to result from the summit.
Richardson noted that the North Koreans seemed to regard the
South highly. In his opinion, the North Koreans had not
ruled out the possibility of a North-South summit in the near
future.

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U.S.-ROK ALLIANCE IN EXCELLENT SHAPE
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10. (SBU) Song noted that the U.S.-ROK Alliance was in
excellent shape, highlighting the conclusion of the KORUS
FTA, the February 23 agreement to transfer wartime
operational command (OPCON) in 2012, and progress in
relocating U.S. military bases. The bilateral alliance, and
shaping the alliance to meet our future common needs, were
top priorities for the ROKG, he said. Song said that
securing FTA ratification by the National Assembly would be a
tough task, but that he, as well as Prime Minister Han
Duck-soo and Trade Minister Kim Hyun-chong, were already hard
at work lobbying for its ratification. Noting that U.S.
Congressional ratification would also be difficult,
Ambassador Vershbow said that opening the Korean market for
U.S. beef imports would help. Song said that once the World

Organization for Animal Health (OIE) made a determination on
the safety of U.S. beef, there would be no reason to ban U.S.
beef or delay the procedures necessary to resume U.S. beef
imports.


11. (U) The Richardson-Principi delegation did not have an
opportunity to clear this message.
STANTON