PDAS DONOVAN'S MEETING WITH DEPUTY NSA KIM TAE-HYO

C O N F I D E N T I A L SEOUL 001903 SIPDIS E.O. 12958: DECL: 09/24/2029 TAGS: PREL PGOV PINR PHUM MNUC SOCI ECON KN KS AF IR SUBJECT: PDAS DONOVAN'S MEETING WITH DEPUTY NSA KIM TAE-HYO REF: SEOUL 1896 Classified By: EAP PDAS Joe Donovan. Reasons 1.4 (b/d). Summary -------------- ¶1. (C) During a December 2 meeting at the Blue House with EAP PDAS Joe Dononvan, ROK Deputy National Security Advisor Kim Tae-hyo characterized Ambassador Bosworth's upcoming trip as a "chance to check out the views" of the DPRK leadership. Kim warned that the North Koreans would attempt to provoke Ambassador Bosworth; the right approach, Kim suggested, was to avoid discussing "philosophical" issues and instead focus on specific issues that could be resolved. Kim said the DPRK's sudden decision to replace its currency appeared to be an attempt by the cash-strapped regime to squeeze cash out of ordinary people, especially those who had profited in the North's gray market economy. Kim stressed that the decision to deploy a small PRT in Parwan province was proof of ROK support for the Obama Administration's new strategy in Afghanistan. He added that the Blue House was "strongly discouraging" ROK companies from doing business with Iran. End summary. Deputy NSA on: Bosworth Trip... -------------- ¶2. (C) During a December 2 meeting at the Blue House with EAP PDAS Joseph Dononvan, ROK Deputy National Security Advisor (DNSA) Dr. Kim Tae-hyo characterized Ambassador Bosworth's upcoming visit to Pyongyang as a "chance to check out the views" of the DPRK leadership. Kim said it appeared the North Koreans were again attempting to drive wedges between the Five Parties; as a reward for a sizeable aid package, Pyongyang had granted meetings with Kim Jong-il to recent senior Chinese visitors, while senior Russian officials had not received such appointments. ¶3. (C) Kim warned that the North Koreans would also attempt to provoke Ambassador Bosworth, demanding, among other things, that the international community accept their nuclear status and that the United States sign a peace treaty with the DPRK. The right approach, Kim reasoned, was to avoid discussing "philosophical" issues with the DPRK and instead focus on specific issues that could be resolved. Moreover, the DPRK should be warned that if it failed to return to the Six-Party Talks and the path of denuclearization, its economy would be subjected to a "serious shock." Keeping China and Russia on-board with UNSCR 1874 sanctions would be key in the coming weeks and months, Kim added. ...and North Korean Currency Fiasco -------------- ¶4. (C) DNSA Kim said the ROK was still analyzing North Korea's sudden move to replace its currency (reftel). Similar actions in the past had been announced in advance, Kim said, noting that Monday's move by the North Korean authorities came with no advance public warning. Kim said the move appeared to be an attempt by the cash-strapped regime to squeeze money of ordinary people, especially those who had done well in the North's gray market economy. Non-elites were being forced to "deposit" money in State-run banks; people knew it was a charade, Kim asserted, and were angered by it. Kim added that the currency replacement scheme would only worsen the polarization of North Korean society. Regime cronies were insulated from the negative effects of the move because, generally speaking, they kept their money in yen, dollars and Euros. Only ordinary North Koreans would be hurt, Kim said. Afghanistan: We Support Obama -------------- ¶5. (C) Noting that he had watched President Obama's speech on Afghanistan, Kim stressed that the ROK backed the Obama Administration's approach. The decision to deploy a small PRT to Parwan province was proof of the ROK's support for the international reconstruction and stabilization effort in Afghanistan. Approximately 500 ROK civilian and military personnel would be deployed to Parwan, along with several helicopters. Kim related that the ROKG's Special Representative for Afghanistan, Deputy Foreign Minister Lee Young-joon, was headed to NATO headquarters on December 3 to sign an information security memorandum of understanding. Lee would coordinate with the United States to ensure there would be an "effective division of labor" between the ROK PRT and the U.S. PRT already operating in Parwan, according to Kim. Applying "Same Principles" to Iran and North Korea -------------- -------------- ¶6. (C) Taking PDAS Donovan's point that the international community needed to do more to support the P5 1 effort to halt Iran's nuclear weapons program, Kim emphasized that the ROKG believed the "same principles" should apply to both North Korea and Iran on the issue of denuclearization. Kim also stressed that the Blue House was "strongly discouraging" South Korean companies from investing in and/or doing business with Iran. STEPHENS