Identifier
Created
Classification
Origin
09SEOUL1186
2009-07-29 04:09:00
UNCLASSIFIED
Embassy Seoul
Cable title:  

SEOUL - PRESS BULLETIN; July 29, 2009

Tags:  PREL PGOV MARR ECON KPAO KS US 
pdf how-to read a cable
VZCZCXRO8827
OO RUEHGH
DE RUEHUL #1186/01 2100409
ZNR UUUUU ZZH
O 290409Z JUL 09
FM AMEMBASSY SEOUL
TO RUEHC/SECSTATE WASHDC IMMEDIATE 5137
RUCPDOC/USDOC WASHDC 8918
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEAIIA/CIA WASHINGTON DC//DDI/OEA//
RHHMUNA/USCINCPAC HONOLULU HI//FPA//
RUEKJCS/SECDEF WASHINGTON DC
RUEKJCS/JOINT STAFF WASHINGTON DC
RUEKDIA/DIA WASHINGTON DC//DB-Z//
RUEHMO/AMEMBASSY MOSCOW 0074
RUEHBJ/AMEMBASSY BEIJING 6356
RUEHKO/AMEMBASSY TOKYO 6440
RUEHGH/AMCONSUL SHANGHAI 1050
RUEHSH/AMCONSUL SHENYANG 4789
RUEHIN/AIT TAIPEI 3762
RUEHGP/AMEMBASSY SINGAPORE 6958
RUCNDT/USMISSION USUN NEW YORK 1308
RUEHGV/USMISSION GENEVA 2627
RUEHLO/AMEMBASSY LONDON 1704
RUEHFR/AMEMBASSY PARIS 2313
UNCLAS SECTION 01 OF 03 SEOUL 001186

SIPDIS

E.O. 12958: N/A
TAGS: PREL PGOV MARR ECON KPAO KS US
SUBJECT: SEOUL - PRESS BULLETIN; July 29, 2009

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


Chosun Ilbo, JoongAng Ilbo, Segye Ilbo
Kumho Asiana Chairman Resigns over Sibling Feud

Dong-a Ilbo
Economic Fears Linger Despite Recovery Signs; with ROKG Running out
of Budget, ROK Economy May Face a "Double Dip Recession" in Third
Quarter If Corporate Investment and Consumption Stay Lackluster

Hankook Ilbo, Seoul Shinmun
Prosecutor-General, Fair Trade Chief Named

Hankyoreh Shinmun
Ssangyong Motor Labor, Management Engaging in Behind-the-Scenes
Talks to Prevent Confrontation between Both Sides
from Heading for Disaster


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

According to the Foreign Affairs and Trade Ministry, the USTR has
started collecting opinions on the KORUS FTA from stakeholders and
Congress to fully understand the exact nature of concerns that have
been raised about the KORUS FTA, for the first time since President
Barack Obama took office. (JoongAng, Hankyoreh, Segye, Seoul)


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

State Department Spokesman Ian Kelly, in a July 27 regular briefing,
said that bilateral talks with North Korea are possible only within
the framework of the Six-Party Talks, effectively rejecting the
North's proposal for bilateral talks. (Hankook, Hankyoreh, Segye,
Seoul, KBS)

According to the Dandong News, a regional newspaper in China,
Chinese border police have seized 70 kg of the strategic metal
"vanadium" bound for North Korea, foiling an attempt to smuggle a
material used to make missile parts. (Chosun, JoongAng, Dong-a,
Hankook, Segye)


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

-N. Korea
--------------
Most ROK media quoted State Department Spokesman Ian Kelly as saying
in a July 27 regular briefing that bilateral talks with North Korea
are possible only within the framework of the Six-Party Talks. Most
media interpreted this as a de facto U.S. rejection of North Korea's
proposal for direct talks.

In a related development, conservative Dong-a Ilbo editorialized:
"Pyongyang has tried to hold bilateral talks with Washington,
whenever it faced obstacles due to its nuclear program, without

giving up its nuclear ambitions. This U.S. rejection has clearly
showed Washington's determination not to be deceived by North Korea
any longer. ... If the North genuinely wants to resolve its nuclear
issue through dialogue, it must first improve strained inter-Korean
ties, instead of seeking direct talks with the U.S. We truly hope
that North Korea returns to the Six-Party Talks with sincerity."

Most ROK media also gave front-and inside page play to a July 28
report by the Dandong News, a regional newspaper in China, saying
that Chinese border police have seized 70 kg of the strategic metal
"vanadium" bound for North Korea, foiling an attempt to smuggle a
material used to make missile parts. According to media reports,

SEOUL 00001186 002 OF 003


although the seizure is in line with China's own export controls,
Chinese analysts observed that Beijing is stepping up inspections on
road and rail traffic into North Korea to help enforce tightened UN
sanctions against North Korea.


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


N. KOREA NEEDS 6-WAY TALKS, NOT BILATERAL TALKS
(Dong-a Ilbo, July 29, 2009, Page 27)

The spokesman for the U.S. Department of State told a news briefing
Monday that Washington is willing to talk to North Korea through the
Six-Party nuclear dialogue if Pyongyang implements specific
measures. North Korea had said last week, "We are ready to meet
(the U.S.)," and added Monday, "We have a different way of
conversation to address the current issue," demanding bilateral
talks. The U.S., however, rejected North Korea's offer.

It is a positive sign that North Korea has stopped its harsh
rhetoric and proposed dialogue since its second nuclear test. Yet
the timing and format are key. Pyongyang proposed talks right
before the U.S.-China Strategic and Economic Dialogue, at a time
when sanctions loom on North Korea under U.N. Security Council
Resolution 1874. The Stalinist country wants bilateral talks rather
than Six-Party Talks with the U.S. It also wants to avoid
international isolation and sanctions by catering to the U.S. -
which wields real power - and shaking up China.

Pyongyang has tried to hold bilateral talks with Washington whenever
it faced obstacles due to its nuclear program, but without giving up
its nuclear ambitions. This U.S. rejection has clearly showed
Washington's determination not to be deceived any longer by North
Korea. The Obama Administration has stressed these principles
several times, saying there is no reward for bad behavior and
rejecting talks that exclude South Korea. American hawks pressing
for sanctions instead of dialogue are gaining power. The
international community is also firm in imposing sanctions. North
Korea must face this reality.

The only way for Pyongyang to survive is to get political and
economic compensation in return for giving up its nuclear program.
U.S. Secretary of State Hillary Clinton recently said, "If North
Korea goes the path of irreversible denuclearization, we will offer
a comprehensive package - the normalization of the U.S.-North Korea
relationship, the establishment of a permanent peace, and energy and
economic assistance." This idea came based on a consensus with
South Korea.

Last week before the strategic and economic dialogue between the
U.S. and China, President Obama said in his opening speech that
Washington will cooperate with Beijing to remove Pyongyang's nuclear
program. North Korea is mistaken if it believes China will be on
its side forever. If the North genuinely wants to resolve its
nuclear issue through dialogue, it must first improve strained
inter-Korean ties instead of seeking direct talks with the U.S. We
truly hope that North Korea returns to the Six-Party Talks with
sincerity."

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


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

USTR STARTS TO SEEK OPINIONS ON KORUS FTA FROM INTERESTED PERSONS
(JoongAng Ilbo, July 29, 2009, Page 19)

By Reporters Kim Sun-ha and Kim Pil-kyu

The Office of the U.S. Trade Representative (USTR) has started
collecting opinions on the KORUS FTA for the first time since

SEOUL 00001186 003 OF 003


President Barack Obama took office.

The Ministry of Foreign Affairs and Trade said on July 28 that the
USTR decided to publish an official notice titled "Request for
Comments Concerning Free Trade Agreement with the ROK" in the July
27 Federal Register and solicit comments from interested persons by
September 15.

The USTR says in the Federal Register that it seeks comments
regarding: how implementation of the FTA will affect trade between
the ROK and the U.S., in general, and with respect to particular
goods or services; economic costs and benefits of removing tariffs
and non-tariff barriers affecting trade between the two countries to
U.S. workers, farmers, ranchers, businesses and consumers; and any
additional steps that one or both governments should take to address
specific concerns regarding the FTA and the bilateral trade and
investment relationship.

An (ROK) Foreign Ministry official said that the USTR notified the
ROKG of its plan to solicit comments before publishing it in the
Federal Register notice.

This action came after the KORUS FTA wasn't ratified by lawmakers
from either country. The Foreign Ministry official noted that the
U.S. auto industry has held negative views on the trade deal. The
official expressed his hope that positive comments will be submitted
in this process to accelerate ratification of the trade pact. But
there are concerns that numerous comments calling for "additional
measures" would spark controversy over renegotiation.


STEPHENS