Identifier
Created
Classification
Origin
09SEOUL1148
2009-07-21 06:47:00
UNCLASSIFIED
Embassy Seoul
Cable title:  

SEOUL - PRESS BULLETIN; July 21, 2009

Tags:  PREL PGOV MARR ECON KPAO KS US 
pdf how-to read a cable
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UNCLAS SECTION 01 OF 06 SEOUL 001148

SIPDIS

E.O. 12958: N/A
TAGS: PREL PGOV MARR ECON KPAO KS US
SUBJECT: SEOUL - PRESS BULLETIN; July 21, 2009

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

Chosun Ilbo, Hankook Ilbo, Hankyoreh Shinmun, Segye Ilbo, Seoul
Shinmun, All TVs
Police Enter Ssangyong Motor Factory Occupied by Fired Unionized
Workers; Unionists Respond Strongly by Firing Slingshots

JoongAng Ilbo
Bad Debt at Banks Falls to 1.19 Percent; Huge Write-offs and Better
Conditions at Smaller Firms Contribute to Recovery

Dong-a Ilbo
Court: "If the Deadlock Continues at Ssangyong Motor, Planned Debt
Workout for Ssangyong May be Suspended"

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

Kurt Campbell, U.S. Assistant Secretary of State for East Asian and
Pacific Affairs, in a July 20 breakfast meeting in Seoul with senior
journalists, said that the U.S. will not prepare a "comprehensive
package" for North Korea's denuclearization unilaterally but through
discussions with the ROK, China and Japan. (Chosun, Dong-a,
Hankyoreh, Segye, Seoul, MBC, VoiceofPeople)

According to a senior (ROK) diplomatic official,
the comprehensive package (mentioned by the Assistant Secretary)
would include all elements for a complete and verifiable
denuclearization (of North Korea),and, if the North takes the grand
step of denuclearization, normalization of U.S.-North Korean
relations would be possible. (JoongAng, Hankook)


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

Secretary of State Hillary Clinton, in a July 20 ABC interview
broadcast from India, likened North Korea's behavior to that of
unruly teenagers. She was quoted: "What we've seen is this constant
demand for attention. Maybe it's the mother in me, or the experience
that I've had with small children and unruly teenagers, and people
who are demanding attention. Don't give it to them. They don't
deserve it." (Chosun, JoongAng, Segye, all TVs)


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

-N. Korea
--------------

- Secretary Clinton's Remarks in India

Most ROK media gave attention to Secretary of State Hillary
Clinton's July 20 ABC interview broadcast from India, in which she
likened North Korea's behavior to that of unruly teenagers.
Secretary Clinton was quoted as saying: "We are not going to give

the North Koreans the satisfaction they are looking for, which is to
elevate them to center stage. What we've seen is this constant
demand for attention. Maybe it's the mother in me, or the
experience that I've had with small children and unruly teenagers,
and people who are demanding attention. Don't give it to them.
They don't deserve it."


- Assistant Secretary of State Campbell's Visit to ROK

Coverage of Assistant Secretary Kurt Campbell's visit to Seoul was
extensive in the ROK media. Most media quoted him as saying during a
July 20 meeting with senior journalists that if North Korea decides
to take irreversible steps toward a nuclear-free Korean Peninsula,
the other members of the Six-Party Talks are prepared to send a

SEOUL 00001148 002 OF 006


"comprehensive package" to the North and that the U.S. will not
prepare for the comprehensive package unilaterally but through
discussions with the ROK, China and Japan.

Right-of-center JoongAng Ilbo and moderate Hankook Ilbo, in a
related development, cited a senior (ROK) diplomatic official as
saying: "The comprehensive package (mentioned by the Assistant
Secretary) would include all elements for a complete and verifiable
denuclearization (of North Korea),and, if the North takes the grand
step of denuclearization, normalization of U.S.-North Korean
relations would be possible."

Conservative Chosun Ilbo editorialized: "If (Washington's) new
approach to North Korea is to be successful, the international
community, especially China, should participate in sanctioning North
Korea with firm resolve. Furthermore, the sanctions against North
Korea should continue sufficiently long enough (to bring the North
back to the dialogue table.) If these two factors are not observed,
the Obama Administration will repeat the failure of its
predecessor."


- U.S. Journalists Detained in N. Korea

Right-of-center JoongAng Ilbo, cited analysis from Washington to
report that North Korea wants political heavyweights, such as former
Presidents Bill Clinton and Jimmy Carter, as special envoys to
Pyongyang to negotiate the journalists' release. According to the
analysis, Washington fears, however, that sending a special envoy to
Pyongyang may set back implementation of UN Security Council
sanctions against North Korea, which is proceeding smoothly backed
by international cooperation. Since the continued detention of the
two journalists will be burdensome for the USG, Washington would
likely compromise with Pyongyang on sending a working-level
official, such as Kurt Campbell, Assistant Secretary of State for
East Asian and Pacific Affairs, according to the analysis.


OPINIONS/EDITORIALS
--------------

How U.S. Strategy over N. Korea Can Succeed
(Chosun Ilbo, July 21, 2009, Page 31)

Kurt Campbell, U.S. Assistant Secretary of State for East Asian and
Pacific Affairs, said on Saturday, "If North Korea is prepared to
take serious and irreversible steps, the U.S., South Korea, Japan,
China and others will be able to put together a comprehensive
package that would be attractive to North Korea." At the same time,
Campbell said, "We believe there have to be consequences. We're
looking at a full range of particular steps designed to put pressure
on North Korea." Assistant Secretary for Public Affairs at the
State Department Philip Crowley, on Friday called these policies a
"new approach" to North Korea.

A quid-pro-quo approach swapping an irreversible dismantling of the
North's nuclear facilities for a comprehensive package is nothing
new. The Bill Clinton administration pursued that option a decade
ago. The reason why the North Korean nuclear issue could not be
resolved over the past 16 years is that North Korea was not
interested in scrapping its nuclear program, while forging and
breaking promises with the international community. The USG also
used rewards to appease North Korea again and again.

Like the George W. Bush Administration, the Barack Obama
Administration is demanding the "complete, verifiable and
irreversible dismantlement" of North Korea's nuclear weapons. The
"new" component is that the Obama Administration does not intend to
reward North Korea for returning to Six-Party nuclear talks and keep
pressuring Pyongyang until it demonstrates a willingness to change.


North Korea has admitted to possessing nuclear weapons as part of a
plan to become a "powerful nation" by 2012 and is seeking to

SEOUL 00001148 003 OF 006


transfer power from Kim Jong-il to his son. There is no way Kim's
successor will give up nuclear weapons, which are the fruits of his
father's reign, so any negotiations to get North Korea to abandon
its nuclear weapons must happen while Kim Jong-il is alive. Unless
North Korea's nuclear weapons program is scrapped within the next
two or three years, the U.S. and China would end up effectively
condoning a nuclear-armed North Korea. This could lead to a nuclear
arms race in the region.

To resolve the nuclear issue through dialogue, North Korea must be
made to return to the negotiating table. Military options aside,
the only other choice is to use a mixture of diplomatic persuasion
and pressure involving political, economic and social means,
including financial sanctions. If (Washington's) new approach to
North Korea is to be successful, the international community,
especially China, should participate in sanctioning North Korea with
firm resolve. Furthermore, the sanctions against North Korea should
continue sufficiently long enough (to bring the North back to the
dialogue table.) If these two factors are not observed, the Obama
Administration will repeat the failure of its predecessor.

(This is a translation provided by the newspaper, and it is
identical to the Korean version.)



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

U.S. Seeks Cooperation for Comprehensive N. Korea Solution
(Chosun Ilbo, July 21, 2009, Page 5)

By Reporter Lim Min-hyuk

A comprehensive solution to the North Korean nuclear problem
envisioned by the U.S. will be prepared in coordination with South
Korea, China and Japan, Kurt Campbell, Assistant Secretary of State
for East Asia and Pacific Affairs, promised Monday.

Assistant Secretary Campbell, on his visit to the ROK, said during a
breakfast meeting with senior journalists yesterday, "If Pyongyang
decides to take an irreversible measure to return to a nuclear-free
Korean Peninsula, the other members of the Six-Party Talks will be
ready to send a comprehensive package."

A Blue House official told reporters, "The idea for a comprehensive
package deal was first suggested by President Lee Myung-bak during
the Seoul-Washington summit last month. The U.S. expressed sympathy
with this suggestion by using the term 'grand bargain.'"

Campbell said that there would be new and attractive elements in the
package, but they would not come for free. He said under the
current circumstances, there is no reason to step back from
sanctions or pressure against the North, and that his administration
and several Asian governments have promised not to be swayed again
by the North's psychological games.

Turning to China, Campbell said that Beijing officials he had met
recently seemed to be persuaded that a new approach suitable for the
current situation is needed. China seemed to be gathering its
thoughts over what approach it should take, he added.

Regarding the recent statement by President of the Supreme People's
Assembly of North Korea, Kim Yong-nam, that "the Six-Party Talks are
over for good," Campbell stated that whether or not to suspend the
Six-Party Talks is not up to North Korea, and the best way to deal
with North Korea is for the remaining five nations to display a
strong partnership.

(We have compared the English version on the website with the Korean
version and added some paragraphs to make them identical.)


ROK and U.S. Are Ready to Negotiate for Comprehensive Package with

SEOUL 00001148 004 OF 006


North Korea
(Hankook Ilbo, July 21, page 2; Excerpts)

By Reporter Chong Sang-won

A high-ranking ROK official, who met with Kurt Campbell, Assistant
Secretary of State for East Asian and Pacific Affairs, said that the
comprehensive approach mentioned by Campbell is the antithesis of a
gradual and partial one. The official added that the comprehensive
package would include all elements of the Joint Statement of
September 19, 2005 to resolve the North Korean nuclear issues at one
time.

The ROKG views that the February 13 and October 3 agreements under
which (the U.S.) promised to provide economic and energy assistance
in the amount of 1 million tons of heavy oil in return for North
Korea's disabling of the Yongbyon nuclear facilities were based on a
partial, not comprehensive approach, and were taken advantage of by
Pyongyang. Therefore, the U.S. and other Six-Party members are
considering normalizing diplomatic relations or building a peace
regime on the Korean Peninsula in return for North Korea dismantling
its nuclear weapons and programs. However, it is uncertain whether
North Korea will return to the negotiating table. Also, since the
U.S. has just begun to discuss ways to reward North Korea for its
denuclearization with China and Japan, there surely will be a bumpy
road ahead.


"(U.S.) Will Prepare Comprehensive Package through Coordination with
ROK, China and Japan"
(Hankyoreh Shinmun, July 21, page 4; Excerpts)

By Reporter Lee Yong-in

Kurt Campbell, Assistant Secretary of State for East Asian and
Pacific Affairs, emphasized a "two track" strategy based on
sanctions and dialogue when he explained a "comprehensive package."
Campbell said that under the current situation, there is no need to
back away from pressure or sanctions against North Korea. He said
that it is important to make sure that there have to be consequences
for North Korea's provocations.

On the morning of July 20, before having a full discussion with
Assistant Secretary Campbell, the ROK's Chief Delegate to the
Six-Party Talks Wi Sung-lac said in an opening statement that (Kurt
Campbell) paid a visit to the ROK at a critical time. He added that
(the U.S.) should make sure that North Korea fully implements UN
Security Council resolution while at the same time considering ways
to bring North Korea back to the negotiating table.

On July 22, Foreign Minister Yu Myung-hwan will hold bilateral talks
with Japan, the U.S., China, and Russia, separately to discuss
bilateral diplomatic issues and ways to address the North Korean
nuclear issue.


Campbell: "(U.S.) Will Coordinate with ROK, China and Japan in
Preparing Comprehensive Package"
(Seoul Shinmun, July 21, page 2; Excerpts)

By Reporters Kim Mi-gyeong, Kim Jeong-eun

A high-ranking ROK official said on July 20 that Assistant Secretary
of State for East Asian and Pacific Affairs Kurt Campbell once
served as Deputy Assistant Secretary of Defense and is expected to
devise a "strict and principled" strategy for North Korea based on
security. Once Campbell establishes a North Korea policy, Special
Representative for North Korea Policy Steven Bosworth and Special
Envoy to the Six-Party Talks Sung Kim will hold negotiations with
North Korea under the so-called "two-track strategy."

An ROKG official said that the comprehensive package will include
comprehensive roadmaps for denuclearization, the normalization of
U.S.-North diplomatic relations and economic assistance to North

SEOUL 00001148 005 OF 006


Korea.


Assistant Secretary Campbell: "If North Korea Takes a Grand Step for
Denuclearization, Diplomatic Normalization with the U.S. Would Be
Possible"
(JoongAng Ilbo, July 21, 2009, Page 12; Excerpts)

By Reporters Chae Byung-kun, Namgoong Wook, and Lee Choong-hyung

U.S. Assistant Secretary of State for East Asia and Pacific Affairs
Kurt Campbell met with the ROK's Chief Negotiator to the Six-Party
Talks Wi Sung-lac at the Ministry of Foreign Affairs and Trade in
Seoul on July 20. A high-ranking foreign policy official noted,
"They shared the view that the two nations should deal with the
North Korean nuclear issue based on close bilateral cooperation, but
need to take a different approach (to the issue.)" By a "different
approach," the official meant a comprehensive package.

He said, "(The comprehensive package) includes all elements needed
for complete and verifiable denuclearization," adding, "If (North
Korea) takes a big step toward denuclearization, the communist state
can even expect diplomatic normalization with the U.S." Thus far,
(the relevant parties) have taken a step-by-step and partial
approach toward the North Korean nuclear issue. Under this
approach, if North Korea moves toward nuclear dismantlement in
stages, it will be provided with corresponding rewards in every
stage. However, according to the official, the comprehensive
package breaks with a repeated past pattern of "reaching an
agreement with the North ? providing the North with rewards ? facing
opposition from Pyongyang ? persuading the North ? reaching another
agreement with the North" and settles the nuclear issue at a stretch
with all bargaining chips - complete dismantlement of weapons of
mass destruction, such as nuclear weapons and missiles, economic
assistance to the North, and the diplomatic normalization between
the North and the U.S.-placed on the table at the same time.

The "comprehensive package" also coincides with the ROKG's approach
to the North Korean nuclear issue. During the ROK-U.S. summit in
Washington on June 16, President Lee Myung-bak proposed that they
should break the past pattern of rewarding Pyongyang for its bad
behavior and that the five parties, except North Korea, should come
up with a package deal which links substantial nuclear dismantlement
with rewards.


(Editor's Note: The same story was also carried by the Dong-a Ilbo
under the headline, "Assistant Secretary Campbell: 'The
Comprehensive Package Is Attractive But Does Not Come For Free.'"
The article reports: "A high-ranking ROKG official explained, 'The
comprehensive package is not the past's step-by-step partial
negotiation but a deal which addresses not only North Korea's
nuclear weapons but also its delivery vehicle, missiles,' adding,
'Under the package deal, rewards for North Korea's denuclearization,
including U.S.-North Korea diplomatic normalization, will also be
provided comprehensively.' Assistant Secretary Campbell met with
Foreign Minister Yu Myung-hwan and Unification Minister Hyun In-taek
on July 20 to discuss ways to cooperate on the North Korean issue,
before leaving for Thailand to attend the ASEAN Regional Forum.")


Beware of Fraudulent Web sites Charging Fee for Cost-Free ESTA
Approval
(Chosun Ilbo, July 21, 2009, Page 10)

By Reporter Kang In-sun

A businessman surnamed Kim visited the U.S. this past June under the
Visa Waiver Program (VWP). He found the Web site of the Electronic
System for Travel Authorization (ESTA) via an Internet portal, put
his personal information into the Web site, paid the fee of 30,000
won online, and gained travel authorization through an e-mail.
Curious about why he had to pay the fee for a simple travel
approval, he made an inquiry to the U.S. Embassy in Seoul. The

SEOUL 00001148 006 OF 006


Embassy responded, "We do not charge a fee for travel
authorization." The Web site that Kim used was the one of a private
agency, which is not related to the USG.

Under the VWP, which started last November, travelers who are
seeking to travel to the U.S. can get travel approval for free after
inputting their basic information, such as names, passport numbers,
and addresses, into the ESTA Web site (http://esta.cbp.dhs.gov/).
These are the same as the information written on an
Arrival/Departure Card. Agencies are pocketing 20,000 to 30,000 won
by providing names, passport numbers, and responses to simple
questions on behalf of travelers.

These sites appear on the top of result lists on internet portal
sites when search words such as the VWP and ESTA are entered. The
sites are easily misunderstood as official because they demonstrate
themselves as sites for ESTA applications.

The U.S. Embassy in the ROK posted a notice on its homepage saying
that an unauthorized third party created a Web site that provides
information on ESTA and receives fees for an ESTA application. The
notice denies any relation to the USG and warns against damage. The
Foreign Ministry said that there have been increasing cases of
damage and that it requested the National Police Office Cyber
Investigation Unit to investigate the matter. The Ministry, though,
added that it is hard to crack down on these Web sites since they
claim that they provide agency services. The Ministry noted that it
plans to promote the real site more actively. However, the Ministry
has not exactly assessed the number of pseudo-sites and the scale of
damage.

According to the U.S. Embassy, from last November when the VWP
started to early July this year, about 200,000 people applied for
ESTA and more than 99 percent were approved.


STEPHENS