SEOUL - PRESS BULLETIN; April 2, 2009

UNCLAS SECTION 01 OF 05 SEOUL 000532 SIPDIS E.O. 12958: N/A TAGS: PREL PGOV MARR ECON KPAO KS US SUBJECT: SEOUL - PRESS BULLETIN; April 2, 2009 TOP HEADLINES -------------- Chosun Ilbo Prosecutors Probing into Link Between the Alleged $5 Million Bribe from Taekwang Industrial Chairman Park Yeon-cha to Former President Roh's Relative and Park's Overseas Business JoongAng Ilbo Huge Bribery Case Embroils Another Roh Supporter: Kang Geum-won, President of Changshin Textile Co., Under Investigation for Investing 7 Billion Won to Establish Bongwha Corporation Dong-a Ilbo 240,000 Apartment Units to be Built in Green Belt Area within 25 Kilometers of Downtown Seoul Hankook Ilbo, All TVs Trade Surplus Hits Record Monthly High of $4.6 Billion Hankyoreh Shinmun Business Circles Obtain Business-Friendly Policies, Including Increased Deregulation, from ROKG but Renege on Promise to Increase Jobs Segye Ilbo, Seoul Shinmun Asbestos Found in Baby Powders DOMESTIC DEVELOPMENTS -------------- President Lee Myung-bak and Japanese Prime Minister Taro Aso pledged yesterday to jointly tackle North Korea's missile and nuclear threats, stating that Pyongyang's planned rocket launch is a violation of UN resolution 1718 prohibiting all ballistic missile activity. (All prints and TVs) President Lee's spokesman said that in the event of North Korea's rocket launch, Japan will propose a new Security Council resolution along with the U.S. and Britain. A ROKG high-ranking official explained, "If a new resolution is submitted by Japan, the ROK and the U.S. will support it." (Hankyoreh) A ROKG high-ranking official said that North Korea should have already begun injecting fuel into a Taepodong-2 missile, but that the fueling process is apparently not being detected because the facilities are located underground. (JoongAng) An ROKG official said, "If North Korea launches a rocket, the ROK will notify the U.S. of its full participation in the Proliferation Security Initiative (PSI),and that we have reached this conclusion after consulting concerned government agencies." (Chosun, Segye) Minister of National Defense Lee Sang-Hee said at yesterday's National Assembly's defense committee meeting that he does not rule out the possibility that what North Korea plans to launch may be a missile. (Seoul) INTERNATIONAL NEWS -------------- SEOUL 00000532 002 OF 005 The Office of the U.S. Trade Representative (USTR),in its 2009 National Trade Estimate Report on Foreign Trade Barriers (NTE),selected the issue of automotive trade as a key matter to be addressed in the KORUS Free Trade Agreement. (Dong-a, Hankook, Seoul, Segye, all TVs) North Korea warned yesterday that it will shoot down any U.S. spy jets entering its airspace. (Chosun, Segye) According to a ROKG source, there are signs that North Korea has recently redeployed its new fighter jets to a base in North Hamgyong Province. (Chosun) Daniel Pinkston, senior analyst for Northeast sia at International Crisis Group, stated yesterday that U.S.intelligence sources believe that North Korea is building a new missile base near its border with China. (Chosun) Riki Ellison, the founder of the Missile Defense Advocacy Alliance, said that the U.S. has not yet deployed the sea-based X-Band Radar to intercept North Korean missiles. His remark is noteworthy because it came after Secretary Gates' statement that the U.S. has no plans to shoot down North Korean missiles. (Seoul) MEDIA ANALYSIS -------------- -North Korea -------------- All media gave prominent play to the summit between President Lee Myung-bak and Japanese Prime Minister Taro Aso. They pledged cooperation to tackle North Korea's missile and nuclear threats, saying Pyongyang's planned rocket launch is a violation of UN resolution 1718 prohibiting its ballistic missile activity. President Lee also said that he understands Japan's position that it will shoot down debris from a North Korean missile that would pose a threat to its territory. Left-leaning Hankyoreh Shinmun quoted President Lee's spokesman as saying that in the event of North Korea's rocket launch, Japan will propose a new Security Council resolution along with the U.S. and Britain. The newspaper quoted an ROKG high-ranking official as saying, "If a new resolution is submitted by Japan, the ROK and the U.S. will support it." However, the daily said that the reason why the ROK, the U.S., and Japan seek a new resolution despite a slim chance of its being adopted is that the resolution carries political significance. Right-of-center JoongAng Ilbo quoted an ROKG high-ranking official as saying that North Korea must have started to inject fuel into a Taepodong-2 missile by now, but it is not being detected apparently because the fueling facilities are located underground. In a related story, the daily also cited ROK experts as saying that a Taepodong-2 missile is estimated to be 42 meters long and a rocket launch may cost 300 to 500 million dollars. Conservative Chosun Ilbo quoted an ROKG official as saying that if North Korea launches a rocket, the ROK will notify the U.S. of its full participation into the Proliferation Security Initiative (PSI). Most newspapers reported that North Korea warned yesterday that it will shoot down any U.S. spy jets entering its airspace. Chosun Ilbo quoted an ROKG source as saying that North Korea was spotted to have moved latest-model fighters from their base to another in North Hamgyong Province. SEOUL 00000532 003 OF 005 Chonsun Ilbo also reported that Daniel Pinkston, senior analyst for Northeast Asia at International Crisis Group, argued that U.S. intelligence sources believe that North Korea is building a new missile base near its border with China. Moderate Seoul Shinmun reported that Minister of National Defense Lee Sang-Hee said yesterday at the National Assembly's defense committee that he does not rule out the possibility that what North Korea plans to launch may be a missile. The daily also quoted Riki Ellison, the founder of the Missile Defense Advocacy Alliance, as saying that the U.S. has not yet deployed the sea-based X-Band Radar to intercept a North Korean missile. This remark is noteworthy because it came after Secretary Gates' statement that the U.S. has no plans to shoot down a North Korean missile. Conservative Segye Ilbo quoted members of the New Beginnings Policy Research Study Group as saying, "In the absence of a credible military option and with sanctions having only limited effect, the U.S. should continue to use the Six-Party Talks and, within that framework, bilateral talks with North Korea to explore whether a new mix of inducements and pressures might achieve U.S. and ROK goals." Conservative Dong-a Ilbo editorialized: "The ROKG should reaffirm its strong determination not to tolerate North Korea's nuclear and long-range ballistic missile. This should, of course, become the pressing goal of cooperation between the ROK and the U.S... . The ROKG should also reconsider regaining the wartime operational control of ROK troops because our military capability alone cannot curb or deter North Korea's nuclear and missile threats... In order to protect the ROK people and territory, the ROKG should also positively consider its full participation in the Proliferation Security Initiative and Missile Defense system." -G-20 Summit -------------- JoongAng Ilbo reported that since the U.S. and Europe have different solutions to the economic crisis, an agreement from the G-20 summit will be limited. Chosun Ilbo reported that with the U.S. and Japan favoring "economic stimulus" and France and Germany supporting "stronger financial regulations," world leaders are engaging in a war of nerves through the media. Most newspapers reported that U.S. and Russian Presidents reopened talks on nuclear arms reduction. Conservative Dong-a Ilbo replayed a Russian news story that the two nations agreed to reduce their strategic nuclear warheads to 2,200, respectively. Dong-a Ilbo and Hankook Ilbo reported that the Presidents of the U.S. and Iran had their first official contact in 30 years and agreed to cooperate on the Afghan issue. Hankyoreh Shinmun carried the story under the headline, "Will Spring Wind Blow in U.S.-Iran Relations?" OPINIONS/EDITORIALS -------------- COUNTERING NK'S MISSILES AND NUKE THREATS (Dong-a Ilbo, April 2, 2009, Page 31) North Korea's missile threat is showing no end in sight. Having announced its plan to launch its ballistic missile Taepodong-2 despite a ban by the UN Security Council, Pyongyang stated that, "If sanctions are submitted to the UNSC, the Six-Party nuclear talks will collapse, and we will stop dismantling our nuclear facilities." The North even threatened to conduct another nuclear test. While preparing its serious aggression against the international community, the North is increasing its threat to the world. The North also warned the South by stating that it will consider Seoul's participation in the Proliferation Security Initiative a declaration of all-out war. Pyongyang is also detaining two SEOUL 00000532 004 OF 005 American journalists and one South Korean from the Kaesong industrial complex, threatening to imprison them long term. The North is using the inhumane action of taking hostages as a bargaining chip to pressure the ROK and the U.S. The North claims that it seeks to launch a satellite, but the Taepodong-2 is a disguised attempt to develop weapons of mass destruction. The North conducted a nuclear test in 2006; if North Korea successfully launches the (Taepodong-2) missile, it will effectively have inter-continental ballistic missiles capable of carrying nuclear weapons. Moreover, the International Crisis Group claimed that Pyongyang has indeed manufactured small nuclear warheads, which is disturbing news. If the North possesses nuclear weapons, its primary target will be the ROK. Despite the alarming situation, Washington has ruled out intercepting the Taepodong-2 if it is launched. President Lee Myung-bak also says he opposes a military response. This is tantamount to voluntarily downplaying the threat and abandoning a necessary counter-response. The ROK and the U.S. are adding to public fears by not disclosing detailed information on the North's nuclear weapons. Seoul's strategy towards Pyongyang in not the same as that of Washington, which formulates its policy from a global perspective. A joint policy research group led by the Asia-Pacific research center at Stanford University and the Korea Society in New York reported that Washington will tolerate Pyongyang's possession of a small quantity of nuclear weapons if the North refrains from nuclear proliferation. The U.S. government designated North Korea as a country possessing nuclear weapons in various documents including those submitted at the confirmation hearings of Leon Panetta as Central Intelligence Agency chief and as a 2008 report on the assessment of the joint operation environment prepared by the joint military command of the U.S. Defense Department. The ROKG should reaffirm its determination to not tolerate North Korea's nuclear and long-range ballistic missiles. This commitment should, of course, be an important point of agreement between the ROK and the U.S. The ROKG should also rethink the transfer of wartime operational control of ROK troops and the dismantlement of the ROK-U.S. Combined Forces Command, currently scheduled for April 17, 2012. In the near future, we cannot curb or even deter North Korea's nuclear and missile threats with only our own military capabilities. Security experts point out that there will be no defense measures as effective as the ROK-U.S. Combined Forces Command until (the ROKG) perfects its defense capabilities against North Korea. To protect the ROK people and territory, the ROKG should also consider fully participating in the Proliferation Security Initiative and Missile Defense system. (We have compared the English version on the website with the Korean version and made some changes to make them identical.) A SWIFT RESPONSE TO U.S. TRADE POLICY IS NEEDED (Segye Ilbo, April 2, 2009, Page 31) The Obama Administration released its annual report on trade barriers for the first time since taking office. In the report, the Office of the United States Trade Representative (USTR) officially confirmed that, regarding the Korea-U.S. Free Trade Agreement (KORUS FTA),automotive trade is a pending issue both countries should deal with swiftly and effectively. This position may indicate that the U.S. intends to change the provisions relating to automotive trade in the KORUS FTA. Previously, 16 Democrats from the House Ways and Means Committee sent a letter to President Obama criticizing the trade barriers in the ROK's automobile market. U.S. Trade Representative Ron Kirk said that the U.S. will make a list of offensive foreign trade barriers and bring those cases before the World Trade Organization (WTO) or engage in (appropriate) bilateral talks. This is the first time that the USTR is drawing up a blacklist of offenders for possible prosecution, apparently because members of the U.S. Congress called for an aggressive trade policy. This stance is worrisome, given that our economy relies heavily on foreign trade. SEOUL 00000532 005 OF 005 The U.S. calls for foreign countries to lift trade barriers while pursuing trade protectionism at home. It seems that the U.S. says one thing and does another. In February, the U.S. Congress passed a massive economic stimulus package that included 'Buy American' clauses mandating the exclusive use of U.S. steel products in all public works projects. These provisions ignited controversies over trade protectionism. According to a recent report released by the World Bank, the U.S. is among 17 of the G20 countries that have implemented trade restrictive measures since last November. The U.S. has been raising its own trade barriers while trying to knock down the barriers of other countries. The ROKG should take swift action to counter trade protectionist moves by the U.S. President Lee Myung-bak should communicate his deep concern to President Obama during the ROK-U.S. summit. The ROKG should bear in mind that promoting the national welfare is the fundamental goal of international diplomacy. FEATURES -------------- ILLEGAL UNDOCUMENTED KOREANS IN THE U.S. NUMBER 240,000 (KBS, April 2) There are 240,000 illegal undocumented Koreans residing in the U.S. Citing the "Census on Undocumented Aliens as of January 2008" recently released by the Department of Homeland Security, U.S.A Hankook Ilbo reported that the number of undocumented Koreans residing in the U.S. increased 37% to 240,000 over eight years ago. Korea supplies the 6th largest group of illegal aliens in the U.S., behind Mexico (7.03 million),El Salvador (570,000),Guatemala (430,000),the Philippines (300,000),and Honduras (300,000). An aggregate of 11.6 million undocumented aliens currently reside in the U.S. STEPHENS