PRESS BULLETIN - December 17, 2008

UNCLAS SEOUL 002423 DEPT FOR EAP/K, EAP/PD, INR/EAP/K AND INR/IL/P TREASURY FOR OASIA/WINGLE USDOC FOR 4430/IEP/OPB/EAP/WGOLICKE STATE PASS USDA ELECTRONICALLY FOR FAS/ITP STATE PASS DOL/ILAB SUDHA HALEY STATE PASS USTR FOR IVES/WEISEL E.O. 12958: N/A TAGS: KPAO PGOV PREL MARR ECON KS US SUBJECT: PRESS BULLETIN - December 17, 2008 Features ¶1. U.S. Congressional Delegation: "If the ROK Ratifies the KORUS FTA, the U.S. Congress Will Also Make Efforts to Do So" (JoongAng Ilbo, December 17, 2008, Page 6) ¶2. "Line" in Front of U.S. Embassy Has Disappeared, but No Tourism "Boom" Yet (Munhwa Ilbo, December 16, 2008, Page 10; Excerpts) ¶3. Visa-Free U.S. Travel Increases Slightly... Total Number of Travelers Decreases (Munhwa Ilbo, December 16, 2008, Page 10) Top Headlines Chosun Ilbo, Hankook Ilbo, Hankyoreh Shinmun, Segye Ilbo, Seoul Shinmun, All TVs Senior Education and Tax Officials Offer to Resign En Masse, Prompting Talk that an Extensive Reshuffle of High-level Officials may be on the Way JoongAng Ilbo ROKG Set to Reshuffle Senior Officials Viewed as "Interfering with Government Policies" Dong-a Ilbo ROKG Announces 2009 Economic Management Plan Focusing on Enhancing Social Safety Net to Protect Low-income Citizens Domestic Developments ¶1. Ruling Grand National Party (GNP) Rep. Kim Hak-song, at a Dec. 16 security forum organized by the state-run Korea Institute for Defense Analyses, said that if North Korea, which is believed to have produced up to 40 kilograms of plutonium, has succeeded in developing small-size nuclear bombs, the North could have produced more than 20 atomic bombs, because it takes 2-3 kilograms of plutonium to make a small nuclear weapon. (JoongAng, Segye) ¶2. A U.S. congressional delegation allegedly said during a Dec. 16 meeting in Seoul with ruling GNP lawmakers that if the ROK ratifies the KORUS FTA, the U.S. Congress will make efforts to do so. (JoongAng) ¶3. A Korean-language version of the U.S. Electronic System for Travel Authorization (ESTA) Web site, from which Korean travelers must apply for and receive an approval to use the Visa Waiver Program before visiting the U.S., will be available beginning today. Mark Strege, the Deputy Consul General at the U.S. Embassy in Seoul, made this remark during a Dec. 16 Caf USA Web chat. (Dong-a, MBC, YTN, Financial News) International News ¶1. According to the Dec. 15 issue of The Washington Post, there is a possibility that Assistant Secretary of State for East Asian and Pacific Affairs Christopher Hill might be appointed as "Special Envoy for the Region" under the incoming Obama Administration. (Dong-a) ¶2. "Will the Suspension of Heavy Fuel Oil Aid to North Korea Work?:" Chosun Ilbo commented in an inside-page article that suspending a shipment of 395,000 tons of heavy fuel oil, the remaining balance from one million tons promised to North Korea under the Six-Party Talks, will deal a serious blow to the energy-strapped North, given that the remaining amount accounts for more than 10 percent of the North's total annual electricity output. Media Analysis Six-Party Talks/ North Korea Conservative Chosun Ilbo carried an inside-page report saying that the idea of suspending fuel aid to North Korea, which appears to be gaining ground in the wake of the collapse of the Six-Party Talks, may be the only way to pressure North Korea since the U.S. removed it from its list of state sponsors of terrorism. Chosun went on to say that some 395,000 tons of heavy fuel oil that had been promised to North Korea remain to be shipped. The amount would account for over 10 percent of the 21.5 billion kWh North Korea produces a year. Chosun quoted an ROKG official as saying: "That is enough to put pressure on North Korea, which is undergoing a serious shortage of energy during the winter." Left-leaning Hankyoreh Shinmun, meanwhile, cited China as expressing its intention to continue providing fuel aid to North Korea by saying yesterday: "Even though the latest round of the Six-Party Talks failed to adopt a verification protocol, the economic and energy aid to North Korea has been provided as a reward for the North's nuclear disablement." Conservative Dong-a Ilbo noted a Dec. 15 Washington Post report saying that there is a possibility that Assistant Secretary of State for East Asian and Pacific Affairs Christopher Hill might be appointed as "Special Envoy for the Region" under the incoming Obama Administration. Even if appointed to the post, the report notes that Mr. Hill still would be directly involved with the North Korean nuclear issue. Right-of-center JoongAng Ilbo and conservative Segye Ilbo ran a story related to ruling Grand National Party (GNP) Rep. Kim Hak-song's claim at a Dec. 16 security forum organized by the state-run Korea Institute for Defense Analysis that: "(i)f North Korea, which is believed to have produced up to 40 kilograms of plutonium, has succeeded in developing small-size nuclear bombs, the North could have produced more than 20 atomic bombs, because it takes 2-3 kilograms of plutonium to make a small nuclear weapon." Features U.S. Congressional Delegation: "If the ROK Ratifies the KORUS FTA, the U.S. Congress Will Also Make Efforts to Do So" (JoongAng Ilbo, December 17, 2008, Page 6) By Reporter Seon Seung-hye - Rep. Hong Jung-wook of the Grand National Party (GNP): "When I went to the U.S., I got the impression that the ROK is not a top priority for U.S. policies." - U.S. Congressman Leonard Boswell: "We are now in a transition period, facing economic difficulties, and even waging war. We sometimes cannot pay attention to all other issues. However, the delegation here thinks very positively of the ROK-U.S. Free Trade Agreement (FTA)." - GNP Rep. Chung OK-im: "The ROK will ratify the FTA according to legal procedures. We hope that the U.S. will do so, too." - U.S. Congressman Steve Kagen: "If the ROK ratifies the deal, it will place much heavier responsibility on the U.S. After a U.S. Secretary of State and other officials are appointed, they go through a Senate hearing, and if the ROK ratifies the FTA before that, the focus of the hearing will be placed on the FTA." During a December 16 invitational gathering of the U.S. Congressional delegation at the National Assembly, participants had a heated debate about the KORUS FTA. GNP Rep. Koo Sang-chan, who hosted the event, even joked, "Since (our comments) are too harsh, you may not be comfortable at the table." During the discussion, the ROK side pressed the U.S. for an answer and the U.S. asked for understanding on several occasions. All U.S. lawmakers who attended the meeting this day said, "The KORUS FTA will be ratified soon, and we will make an effort for that." Rep. Henry Cuellar noted, "After Obama takes office, there will be some progress in (breaking) the current deadlock," adding, "It is only a matter of timing and domestic politics, and the U.S. cannot turn its back and leave." Rep. Robert B. Goodlatte also stated, "I heard that progress on the U.S. beef issue was made due to consideration of the FTA ratification. In response to it, we will also try to get the FTA ratified." While strongly asking the U.S. to approve the FTA, ROK lawmakers dismissed the possibility of renegotiation of the deal. GNP Rep. Lee Kye-jin said, "Since the ROK's food self-sufficiency rate was just 26 percent, it is inevitable to import food from agricultural powerhouses, such as the U.S. Nevertheless, if (the U.S.) intends to pour its agricultural and livestock products into a small nation like the ROK, it could be seen as a threat." Rep. Park Sun-young of the Liberty Forward Party also explained, "While the U.S. sharply expanded the amount of its agricultural subsidy and the number of subsidy recipients, that is not the case in the ROK, and so (the ROK's agricultural industry) is in dire straits," adding, "Timing and domestic politics are also variables in the ROK." Rep. Koo Sang-chan said, "The U.S. Embassy first asked us to have open and candid discussions. Thanks to this, the debate was productive." The meeting was attended by Reps. Koo, Shin Sung-beom, Yoo Ki-joon, Lee Kye-jin, Lee Hye-hoon, Chung Ok-im, Hong Jung-wook, and Hwang Young-chul (from the Grand National Party) and Rep. Park Young-sun (from the Liberty Forward Party). The U.S. Congressional delegation included five members of the House Committee on Agriculture, including Leonard Boswell, Chairman of the House Subcommittee on Livestock, Dairy, and Poultry. "Line" in Front of U.S. Embassy Has Disappeared, but No Tourism "Boom" Yet (Munhwa Ilbo, December 16, 2008, Page 10; Excerpts) By Reporters Lee Yong-kwon, Lim Jung-hwan, Chae Hyun-sik and Kang Beo-deul Observers still point out that Koreans are not fully informed of the VWP. Many people do not know that before traveling to the U.S. under the Visa Waiver Program (VWP),they need to get a permit in advance and that only e-passport holders are allowed to travel without a visa. An official of Hana Tour said, "Some of the long-term travelers who must have a U.S. visa demand visa-free travel" adding, "Since the Korean-language Web site is not provided yet, many people are having difficulty." Visa-Free U.S. Travel Increases Slightly... Total Number of Travelers Decreases (Munhwa Ilbo, December 16, 2008, Page 10) By Washington Correspondent Choi Hyung-doo After the ROK joined the U.S. Visa Waiver Program (VWP),it became much easier for ROK travelers to visit the U.S., but due to the high exchange rate and economic difficulties, the total number of travelers has been decreasing. ROK airliners and travel agencies in the U.S. said on December 16 that the proportion of travelers who got the USG's entry permit on the Internet over the past month increased gradually, but the total number of travelers (to the U.S.) was found to be smaller than usual. The number of passengers who flew Korean Air to Washington last month was found to be smaller than usual. Out of Koreans who flew Korean Air to New York, the number of VWP travelers has increased an average of 11. 6 people per day to 337 people on December 15. A total of 103 visa-free travelers have flown Asiana Airlines to New York. VWP travelers who flew Korean Air to New York numbered 125 in November, but it has risen to 212 as of December 15. The number of VWP travelers who flew Asiana Airlines to New York increased from 34 in November to 69 by December 14. According to Korean Air, which operates two flights a day between Incheon and New York, the number of VWP travelers remained in single digit in November, but it increased to about ten this month, and on December 15, 30 people, the largest number in December, boarded an airplane under the VWP. Ha Min-ki, head of the San Francisco branch of Korean Air, said, "The number of VWP travelers is about five to six per flight, but it does not have a big impact on the total number of passengers." Suh Young-bin, head of the San Francisco branch of Asiana Airlines, noted, "Although we plan to increase the number of flights to San Francisco starting from the end of December, it is difficult to say that the VWP is making any difference yet probably because of the economic downturn." Kevin Lim, an official of Samho Tourism in Los Angeles, said, "Although the total number of Korean travelers to the U.S. is smaller than last year, the number of VWP travelers is increasing steadily. In particular, out of Koreans who visit the western part of the U.S., about 35 percent travel under the VWP." As the ROK's participation into the VWP made it easier for young females to travel to the U.S., the Korean-American communities in the U.S. are concerned that the number of young women working in the sex industry may increase. Stephens