Identifier
Created
Classification
Origin
09SEOUL1126
2009-07-16 07:01:00
UNCLASSIFIED
Embassy Seoul
Cable title:  

SEOUL - PRESS BULLETIN; July 16, 2009

Tags:  PREL PGOV MARR ECON KPAO KS US 
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RUEAIIA/CIA WASHINGTON DC//DDI/OEA//
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UNCLAS SECTION 01 OF 03 SEOUL 001126

SIPDIS

E.O. 12958: N/A
TAGS: PREL PGOV MARR ECON KPAO KS US
SUBJECT: SEOUL - PRESS BULLETIN; July 16, 2009

C O R R E C T E D COPY - This telegram replaces Seoul 01125, same
date.


TOP HEADLINES
--------------

Chosun Ilbo, Seoul Shinmun
Sweeping Blue House and Cabinet Reshuffle Expected
Next Month

JoongAng Ilbo
As Economic Skies Clear, Major ROK Conglomerates
Plan to Invest

Dong-a Ilbo
"MBnomics" Lost in a "Maze of Tax"
President Lee's Economic Team Locked in Dispute
over Tax Cuts

Hankook Ilbo
Nomination Debacle Puts Lee Myung-bak Administration's Vetting
System under Close Scrutiny

Hankyoreh Shinmun
Traditional Markets Rapidly Losing Business
to Large Retail Supermarkets

Segye Ilbo, All TVs
Ruling and Opposition Lawmakers Occupy
National Assembly's Main Chamber, Bracing for Showdown
over Contentious Media Reform Bill


DOMESTIC DEVELOPMENTS
--------------

USFK Commander Gen. Walter Sharp, in a July 14 press conference in
New York, said that there is no immediate need to bolster the ROK's
missile range. He was quoted: "There has been no request (from the
ROKG) to do that and I really don't see a need for that right now."
(JoongAng, Hankook, Seoul)


INTERNATIONAL NEWS
--------------


State Department Spokesman Ian Kelly, in a July 13 briefing, said
that sanctions against North Korea will be on the agenda at the
annual ASEAN Regional Forum in Thailand July 22-23. (Chosun,
Hankyoreh, Segye, all TVs)

In a related development, according to a diplomatic source in
Washington, Pyongyang will send an ambassador-at-large, instead of
Foreign Minister Pak Ui-chun, to the regional security forum.
(Chosun, Seoul)


MEDIA ANALYSIS
--------------

-North N. Korea
--------------
Most ROK TV networks quoted the president of North Korea's Presidium
of the Supreme People's Assembly and the country's No. 2 leader, Kim
Yong-nam, as arguing at the Non-Aligned Movement summit of 118
nations: "The (Six-Party) Talks came to a permanent end because the
U.S. and its allies abandoned the principles of respect for
sovereign rights and equality. In this situation, (North Korea) had
no other choice but to take decisive measures to further strengthen

its nuclear deterrence."

Most ROK media noted July 13 press remarks by State Department

SEOUL 00001126 002 OF 003


Spokesman Ian Kelly, quoting him as saying that sanctions against
North Korea will be on the agenda in Thailand at the annual ASEAN
Regional Forum July 22-23, in which Secretary of State Hillary
Clinton will participate.

In a related development, conservative Chosun Ilbo and moderate
Seoul Shinmun reported that Pyongyang will send an
ambassador-at-large to the regional security forum, instead of
Foreign Minister Pak Ui-chun. A diplomatic source in Washington was
quoted: "If the situation was in its favor, North Korea would
usually send its foreign minister to the ARF sessions, but if not,
it would send lower-ranking officials."

Conservative Chosun Ilbo and Segye Ilbo gave attention to a July 14
debate session at the Cato Institute in Washington on China's role
in resolving North Korean issues, in which Larry Niksch, a senior
researcher at the U.S. Congressional Research Service (CRS),claimed
that North Korea earns more than $2 billion per year from arms deals
with Iran. He was further quoted: "In order to implement effective
sanctions against North Korea, China must block flights between
Pyongyang and Tehran in addition to financial sanctions (against the
communist state.)"


FEATURES
--------------

U.S. KOREAN PENINSULA POLICY LED BY "OBAMA-CLINTON LINE"
(JoongAng Ilbo, July 16, 2009, page 2)

By Correspondent Kim Jeong-uk

The "central axis" of the Obama Administration's Korean Peninsula
policy line has shifted. Those who were assigned to key positions
in the U.S. Department of State or engaged in negotiations with
North Korea during the Bush Administration have been sidelined.
Instead, the U.S.' Korea Peninsula policy is being led by those from
the "Obama-Clinton line," who have been appointed since the Obama
Administration took office.

A Washington diplomatic source said on July 14 (local time) that the
Department of State will soon replace Kurt Tong, who was appointed
as Director of the Office of Korean Affairs at the State Department
by the Bush Administration last August. Tong, who has been in charge
of Korean Peninsula affairs, served as Director for Asian Economic
Affairs at the National Security Council (NSC) during the Bush
Administration and was involved in signing the Korea-U.S. Free Trade
Agreement (KORUS FTA). Since regular personnel changes by the State
Department generally occur every two years, his replacement is
considered unusual.

Reportedly, Tong will advance to the position of Asia-Pacific
Economic Cooperation Ambassador (deputy assistant secretary-level)
and his successor will be one experienced in political affairs.
This means a reshuffle of the State Department's Korean Peninsula
policy line, from the position of Assistant Secretary of State for
East Asian and Pacific Affairs, which was assigned to Kurt Campbell,
who has been officially working since being confirmed by the Senate,
to the position in charge of Korean Peninsula affairs. Also,
Special Representative for North Korea Policy Stephen Bosworth and
Special Envoy for the Six-Party Talks Sung Kim are responsible for
the Obama Administration's Korean Peninsula policy.

A diplomatic source knowledgeable about the situation at the
Department of State said on July 14, "At present, Deputy Secretary
James Steinberg is in full charge of Korean Peninsula issues, and
Assistant Secretary Campbell is making his voice heard. Due to
North Korea's repeated provocations, however, the roles of Special
Representative for North Korea Policy Stephen Bosworth and Special
Envoy for the Six-Party Talks Sung Kim, who are both in charge of
negotiations with North Korea, are reducing."

Deputy Secretary Steinberg, who had served as Deputy National
Security Advisor to President Bill Clinton, led a delegation with

SEOUL 00001126 003 OF 003


Special Representative Bosworth to China last month after the
adoption of UN Security Council Resolution 1847 imposing sanctions
on North Korea and asked the international community for a "strong
and unified response." Assistant Secretary Campbell, who was in
charge of the Clinton camp's Asia policy during last year's
presidential campaign, plans to visit the ROK on July 18 for the
first time since assuming office and will coordinate stances with
other nations on a response to North Korea.

The source in Washington noted, "Steinberg or Campbell is not the
person who rejects active diplomatic negotiations with North Korea,
but considering that they cannot compromise on the denuclearization
of the Korean Peninsula, they are likely to maintain a pressure
policy on North Korea for the time being."



STEPHENS