Identifier
Created
Classification
Origin
08SEOUL2461
2008-12-23 07:02:00
CONFIDENTIAL
Embassy Seoul
Cable title:  

ROK-RUSSIA STRATEGIC DIALOGUE BUILDS ON CLOSER TIES

Tags:  PREL RS KS 
pdf how-to read a cable
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OO RUEHWEB

DE RUEHUL #2461/01 3580702
ZNY CCCCC ZZH
O 230702Z DEC 08
FM AMEMBASSY SEOUL
TO RUEHC/SECSTATE WASHDC IMMEDIATE 2745
INFO RUEHBJ/AMEMBASSY BEIJING PRIORITY 5108
RUEHMO/AMEMBASSY MOSCOW PRIORITY 9145
RUEHKO/AMEMBASSY TOKYO PRIORITY 5215
RUACAAA/COMUSKOREA INTEL SEOUL KOR PRIORITY
RHMFISS/COMUSKOREA J5 SEOUL KOR PRIORITY
RHMFISS/COMUSFK SEOUL KOR PRIORITY
RHHMUNA/CDR USPACOM HONOLULU HI PRIORITY
C O N F I D E N T I A L SEOUL 002461 

SIPDIS

E.O. 12958: DECL: 12/22/2018
TAGS: PREL RS KS
SUBJECT: ROK-RUSSIA STRATEGIC DIALOGUE BUILDS ON CLOSER TIES

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

C O N F I D E N T I A L SEOUL 002461

SIPDIS

E.O. 12958: DECL: 12/22/2018
TAGS: PREL RS KS
SUBJECT: ROK-RUSSIA STRATEGIC DIALOGUE BUILDS ON CLOSER TIES

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


1. (C) Summary: ROK Vice Foreign Minister Kwon Jong-rak and
Russian First Deputy Minister of Foreign Affairs Andrei
Denisov discussed strengthening bilateral ties at the first
ROK-Russia Vice Foreign Minister Strategic Dialogue in Seoul
on December 18. Director of MOFAT's Russia and CIS Division
Lim Soo-suk gave us a read out on December 22. The two sides
discussed

-- prospects for an inter-Korean pipeline to supply Russian
natural gas to South Korea;

-- obstacles to linking an inter-Korean railway to the
trans-Siberian railway;

-- Korea's request for special port privileges in Russia;

-- Russia's objection to a missile defense system in East
Asia;

-- Russia's request for Korea's support for Russia's bid to
join ASEM (The Asia-Europe Meeting),the Asian Development
Bank (ADB),and the East Asia Summit (EAS);

-- Korea's invitation to President Medvedev or Prime Minster
Putin to visit Seoul; and

-- Russia's advice that continued patience and flexibility
are required in dealing with North Korea.

The first strategic dialogue builds on President Lee
Myoung-bak's September 2008 state visit to Moscow and is a
substantive step forward in ROK-Russia relations. End
Summary.


2. (C) Vice FM Kwon and Deputy FM Denisov met for two hours
of talks on the 18th, followed by a working lunch. Talks
continued on the 19th at the Director-General level. As the
first Vice Foreign Minister-level talks between the two
countries, Lim said, these discussions were important to
opening channels of communication and building confidence
between the two foreign ministries, which are managing
increasingly closer and more complex bilateral relations.

--------------
Inter-Korean Pipeline
--------------


3. (C) Lim said Russia was pushing ahead with a two-year
feasibility study on building a pipeline through North Korea
to deliver natural gas to South Korea. The Russians were
somewhat optimistic that the DPRK, which could earn some USD
120 million annually from the pipeline, would be cooperative
and asked whether the U.S. would object to the pipeline
because of the financial benefits to North Korea. Lim said
the ROK had not yet calculated the political feasibility of

the pipeline, but the North's recent restrictions on access
to the Kaesong Industrial Complex would make the ROK
reluctant to depend on the DPRK's cooperation for gas
deliveries. The alternative to a pipeline would be the more
expensive option of ship deliveries.


4. (U) When President Lee visited Moscow in September, he
agreed to a contract for Russia to supply Korea with 7.5
million tons of natural gas annually for thirty years
beginning from 2015.

--------------
Railway Link
--------------


5. (C) Kwon and Denisov discussed the obstacles to proceeding
with plans to link an inter-Korean railway to the
trans-Siberian railway system. The ROK estimates it would
cost USD 230 million to renovate the North Korean rail system
to connect ROK and Russia lines. Lim said the ROKG decision
that private companies should bear the costs without the
benefit of government guarantees makes progress unlikely for
the foreseeable future due to the Korean business community's
risk assessment of investing in the DPRK.

--------------
Exclusive ROK Port Privileges
--------------


6. (C) The ROK is eager to obtain special port privileges at
Nakhodka, or another port near Vladivostok, but, Lim said,
the agreement has been delayed while the Russians study the
impact of lost revenue at neighboring ports. Lim said the
ROK request is for a dedicated pier with specially trained
Russian customs officials to facilitate the speedy flow of
goods.

--------------
Russia's Opposition to Missile Defense
--------------


7. (C) Denisov emphasized Russia's objection to a missile
defense system in East Asia, saying it would be a
destabilizing development for the region. Lim said Denisov
did not mention the U.S. or the possibility of Korea working
with the U.S. on missile defense, but, nonetheless, pointedly
voiced its opposition to missile defense.


--------------
Russia Seeking Club Memberships
--------------


8. (C) Russia requested ROK support for Russian membership in
three regional organizations: ASEM (The Asia-Europe
Meeting),the Asian Development Bank (ADB),and the East Asia
Summit (EAS). The ROK supports Russia joining ASEM, will
consider its position on Russia joining the ADB, and, due to
a moratorium on new members in EAS, is not optimistic of
Russia's chances of joining EAS in the near future.

--------------
Future Visits
--------------


9. (C) Lim said Russia was noncommittal on Korea's invitation
to either Russian President Medvedev or Prime Minster Putin
to reciprocate President Lee's September 2008 state visit to
Moscow. Lim said Prime Minister Putin is planning to visit
Tokyo in January or February and Seoul is hopeful he will
include Korea on his itinerary. Participants did agree in
principle to hold bilateral summit meetings next year on the
margins of the G-20 in London in April, the G-8 in Italy in
July, and the APEC summit in Singapore in November. They
also agreed to a second Vice Foreign Minister-level strategic
dialogue to be held next year.

--------------
North Korea and Iran
--------------


10. (C) Lim said the DPRK and the 6PT were on the agenda but
did not get much attention, apart from Russia's advice that
continued patience and flexibility are required in dealing
with North Korea. Russia also called for more flexibility in
dealing with Iran. Lim said Russia's interest was to expand
opportunities for dialogue and negotiation and not risk the
chance that the U.S. or Israel would have justification for
military action against Iran. Denisov, he said, highlighted
the value of the EU-3 framework for dealing with Iran but did
not make any specific request of Korea.

--------------
Comment
--------------


11. (C) In addition to Russia's relationship to North Korea
and its influence on the Korean peninsula, Russia is becoming
and increasingly important trade partner for Korea. South
Koreans see plenty of opportunity in Russian natural
resources. Lim said Korea's trade relationship with China
has matured to the degree that Korean businesses are looking
for a new "blue water" economic frontier, and think they may
have found it in Russia. Lim said the two governments are
trying to catch up to the relationship that businesses have
already established and that the strategic dialogue was a
constructive step forward.
STEPHENS