SEOUL - PRESS BULLETIN; April 14, 2009

UNCLAS SECTION 01 OF 06 SEOUL 000600 SIPDIS E.O. 12958: N/A TAGS: PREL PGOV MARR ECON KPAO KS US SUBJECT: SEOUL - PRESS BULLETIN; April 14, 2009 TOP HEADLINES -------------- Chosun Ilbo Prosecution: "The $6 Million Former President Roh Received from Taekwang Industrial CEO was a Reward for Business Favors" JoongAng Ilbo Economic Experts from ROK, China and Japan Call for Creation of an Asian Monetary Fund Dong-a Ilbo, Hankook Ilbo, All TVs Taekwang Industrial CEO Testifies: "Former President Roh Called Me in June 2007 to Ask for Money to Give His Son who was Studying in the U.S." Hankyoreh Shinmun, Seoul Shinmun Prosecution: "Former President Roh's Son Had Ownership of Some of the $5 Million which was Wired from Taekwang Industrial CEO to the Former President's Nephew-In-Law" Segye Ilbo Taekwang Industrial CEO's Close Confidant Visited Blue House Ten Times after Taekwang CEO's $1 Million was Delivered to Former President Roh's Side DOMESTIC DEVELOPMENTS -------------- Trade Minister Kim Jong-hoon told the National Assembly yesterday that the U.S. seems to be increasingly positive about ratifying the KORUS FTA. (Segye, Seoul, KBS, Pressian) INTERNATIONAL NEWS -------------- Since the UN Security Council (UNSC) has agreed to adopt a presidential statement condemning North Korea's rocket launch, all eyes are on what steps North Korea will take in response. There is speculation that North Korea might threaten to boycott the Six-Party Talks or stage military provocations near the Northern Limit Line (NLL),the de facto sea border between the two Koreas in the West Sea, while aiming for direct talks with the U.S. (JoongAng, OhmyNews) "America's North Korea Envoy Lying Low:" ROK diplomats are complaining that Stephen Bosworth, the U.S. Special Representative for North Korea Policy, has been conspicuous by his absence in the 10 days since North Korea's rocket launch. An ROKG official was quoted as saying: "We know that Ambassador Bosworth visits Washington once a week. But we don't know what exactly he does there." Another official said: "We need more time to find out what sort of North Korea policy Bosworth has in mind." (Chosun) MEDIA ANALYSIS -------------- -North Korea -------------- Right-of-center JoongAng Ilbo and OhmyNews, a progressive online newspaper, carried reports on possible steps North Korea might take in response to the UNSC's agreement to adopt a presidential statement condemning North Korea's rocket launch. The media outlets agreed that North Korea would likely employ its past strategy of heightening tensions on the Korean Peninsula, while aiming for direct talks with the U.S. Citing local experts, JoongAng Ilbo, in particular, speculated that SEOUL 00000600 002 OF 006 North Korea might use different strategies toward the U.S. and the ROK: As for the U.S., North Korea might threaten to boycott the Six-Party Talks, while demanding bilateral talks with the U.S. As for the ROK, on the other hand, the communist state might present tangible threats, including military provocations near the Northern Limit Line (NLL),the de facto sea border between the two Koreas in the West Sea. For the U.S., the North might take sterner measures, such as threatening to boycott the Six-Party Talks or to suspend nuclear disablement work at Yongbyon. At the same time, the North may seek, at least behind the scenes, an opportunity for bilateral contact with the U.S. Conversely, the North may look to more tangible threats, including military provocations near the Northern Limit Line (NLL),the de facto sea border between the two Koreas in the Yellow Sea. Conservative Chosun Ilbo, in an article titled "America's North Korea Envoy Lying Low," observed that ROK diplomats are complaining that Stephen Bosworth, the U.S. Special Representative for North Korea Policy, has been conspicuous by his absence in the 10 days since North Korea's rocket launch. The newspaper explained that Ambassador Bosworth has not spoken to his ROK counterpart Wi Sung-lac since his press interview in Washington on April 3, two days before the launch. The report quoted an ROKG official's statement: "We know that Ambassador Bosworth visits Washington once a week. But we don't know what exactly he does there." Another official was also quoted as saying: "We need more time to find out what sort of North Korea policy Bosworth has in mind." OPINIONS/EDITORIALS -------------- FEATURES -------------- WILL NORTH KOREA VIOLATE NLL OR REJECT SIX-PARTY TALKS? (JoongAng Ilbo, April 14, 2009, Page 13) By Reporter Chae Byung-gun North Korea's Countermove to the UNSC Draws Attention While seeking direct dialogue with the U.S., the North is expected to use its past strategy of escalating tensions. With the UN Security Council agreeing to adopt a presidential statement condemning North Korea's rocket launch as a "violation of UNSC Resolution 1718," the situation on the Korean Peninsula is entering a critical phase. This is because North Korea's countermove will have a direct impact on U.S.-North Korea and inter-Korean relations. After test-firing a rocket on April 5, nothing was heard from North Korea until April 13. Before the launch, there was a downpour of threatening statements from the country, such as "Any UN discussion (in regard to North Korea's rocket launch) will be seen as a hostile act" and "Strong, necessary countermeasures will be taken." But after the launch, the threats stopped. This (silence) could be a sign that Pyongyang is preparing for the expected adoption of the UNSC's presidential statement on April 14. Some observers mention the possibility that the North might use different strategies toward the U.S. and the ROK. For the U.S., the North might take sterner measures, such as threatening to boycott the Six-Party Talks or to suspend nuclear disablement work at Yongbyon. At the same time, the North may seek, at least behind the scenes, an opportunity for bilateral contact with the U.S. Conversely, for the South, the North may look to more tangible threats, including military provocations near the Northern Limit Line (NLL),the de facto sea border between the two Koreas in the Yellow Sea. SEOUL 00000600 003 OF 006 Kim Sung-han, Professor of International Relations at Korea University, predicted, "While threatening to halt the Six-Party Talks, the North will demand bilateral contact with the U.S." In other words, North Korea will choose the path it took in 1998 and ¶2006. After North Korea launched the Taepodong-1 missile in August 1998, it engaged in missile talks with the U.S. in New York in October that same year and invited U.S. North Korea Policy Coordinator William Perry to Pyongyang in May 1999, which (brought about a reversal) in U.S.-North Korea relations. Furthermore, in 2006, after test-firing the Taepodong-2 missile and conducting a nuclear test, the North succeeded in securing bilateral talks in Berlin the following January between North Korean and U.S. chief negotiators to the Six-Party Talks. This time again, since the U.S. said that it would not shoot down a missile, the North's response to the U.S. was different from (its response to) other (countries.). On April 2, right before the rocket launch, the Chief of the General Staff of the (North) Korean People's Army threatened Japan with a "thunderbolt of fire," but said to the U.S., "The U.S. should immediately withdraw armed forces deployed (in the Sea of Japan) if it does not want to receive damage." Meanwhile, with the ROKG likely to join the Proliferation Security Initiative (PSI),the NLL has emerged as an important variable when it comes to inter-Korean ties. In reference to the PSI, Minister of Foreign Affairs and Trade Yu Myung-hwan said at the National Assembly on April 13, "We are in final consultations with related nations." Last month, however, the North declared, "We will not allow (the enemy) to infringe even 0,001mm upon (the territorial waters of) the DPRK," further escalating tension near the NLL. AMERICA'S N. KOREA ENVOY LYING LOW (Chosun Ilbo, April 14, 2009, Page 6) ROK diplomats are complaining that Stephen Bosworth, the U.S. Special Representative for North Korea Policy, has been conspicuous by his absence in the 10 days since North Korea's rocket launch. Some say that he is waiting until the delicate debate over UN Security Council sanctions has ended and a setting for the U.S.-North Korea high-ranking talks is created. Bosworth, a part-time government employee, has not been seen in public since he resumed his duties as dean of The Fletcher School at Tufts University following a press interview he gave in Washington on April 3, two days before the North launched the rocket. Since then, he has not spoken to his ROK counterpart, Wi Sung-lac. "We know that Ambassador Bosworth visits Washington once a week," an ROK official complained. "But we don't know what exactly he does there." Another government official here said, "We need more time to find out what sort of North Korea policy Bosworth has in mind." Some observers say Bosworth is keeping a low profile because he is buying time to fine-tune North Korea policy with U.S. President Barack Obama. "Bosworth may be in some confusion because he has expressed views toward the North that were too conciliatory, apparently because he didn't read President Obama's mind properly," said Prof. Kim Sung-han of Korea University. In the interview on April 3, Bosworth said pressure on the North was "not the most productive line of approach." He added that he was ready to visit Pyongyang and resume the Six-Party Talks once the "dust from the missiles settles." But two days later, Obama came out strongly against the long-range rocket launch, saying, "Rules must be binding. Violations must be punished. Words must mean something." There were attacks from conservatives in Washington, who accused the administration of lacking resolve. Moreover, some people note that Special Representative Bosworth shows a passive attitude in daily consultations since he regards his SEOUL 00000600 004 OF 006 position as too high. A diplomatic source said, "It seems that Bosworth is preparing to hold talks with North Korean First Vice Foreign Minister Kang Sok-ju, not with Kim Kye-gwan, the North's Chief Delegate to the Six-Party Talks. But Yun, Duk-min, professor at the Institute of Foreign Affairs & National Security said that since North Korea rejected Bosworth's proposed visit, it seems that North Korea is not satisfied with him. He added that North Korea would consider U.S. Secretary of State Clinton as the U.S. partner in bilateral talks. (We have compared the English version on the website with the Korean version and made some changes to make them identical.) U.S. SEEN AS FAVORABLE TOWARD KORUS FTA (KBS, April 13, 2009) Trade Minister Kim Jong-hoon says the U.S. seems to be increasingly positive about the possible ratification of the Free Trade Agreement with the ROK. In a parliamentary session on Monday, Kim said that in general, Washington seems to be displaying a positive outlook on the trade deal. Assistant U.S. Trade Representative Danny Sepulveda has recently said that the U.S.T.R. wants to address outstanding issues on the pending free trade agreements with Panama, Colombia and the ROK without renegotiating their texts. Kim said the U.S. official's remarks are very significant. But he was quick to add that the government has not yet received any official offer or proposal from the U.S. in regards to ratification. Kim also said that his ministry and the U.S. Trade Representative (USTR) will start more in-depth discussions next month on the ratification of the free trade accord signed in June 2007. U.S. INCREASINGLY POSITIVE ON KORUS FTA: TRADE MINISTER (Arirang news, April 13, 2009) ROK Trade Minister Kim Jong-hoon says he believes that the U.S.' stance over the Korea-U.S. Free Trade Agreement is turning positive. A U.S. trade journal, "Inside US Trade", reported on Friday that Assistant U.S. Trade Representative Danny Sepulveda told business representatives that the USTR intends to address pending issues on FTAs with Panama, Colombia and the ROK without renegotiating. And during a meeting held at the National Assembly on Monday the ROK trade minister said that the U.S. is revising its trade policy and that overall it is taking an increasingly positive stance towards the Korea-U.S. trade pact. He said that although the U.S. has expressed dissatisfaction over the trade deal it did not mention renegotiation which he views as an encouraging sign. Kim went on to say that talks between the ROK's Ministry of Foreign Affairs and Trade and the U.S. Trade Representative are expected to be held in May prior to the Korea-U.S. summit talks scheduled for June. The trade minister also said that he believes the ROK's initial move of ratifying the FTA would prompt the U.S. to follow suit. The bilateral trade pact was concluded in April and signed in June of ¶2007. Ratification of the deal has been delayed, however, due to opposition from Barack Obama who called it "badly flawed" and "imbalanced" during his presidential campaign. "USTR WANTS FTA WITH ROK RATIFIED WITHOUT CHANGES" (Arirang news, April 13, 2009) A senior U.S. trade official says Washington wants to launch the already-signed Free Trade Agreement with the ROK without making amendments. An American trade journal called Inside US Trade reports that Assistant U.S. Trade Representative Danny Sepulveda told business representatives that the USTR wants to address outstanding issues on pending FTAs with the ROK and other countries without renegotiations. The news follows remarks by the Obama Administration that the FTA with the ROK, which was sealed when George W. Bush was president, is "deeply flawed" and "imbalanced." Both the U.S. Congress and the ROK National Assembly have yet to SEOUL 00000600 005 OF 006 ratify the trade deal since trade officials from both sides ended negotiations in 2007. NORTH KOREA "BOYCOTTS SIX-PARTY TALKS... RESCINDS EXISTING AGREEMENTS" (Yonhap News, April 14, 2009) By Reporter Lim Joo-young North Korea hints that it may bolster its nuclear deterrent by reprocessing spent fuel rods, consider building its own light-water nuclear reactor, and continue efforts to test-fire long-range rockets. In protest of the UN Security Council's April 14 adoption of the presidential statement condemning North Korea's rocket launch as a violation of UNSC Resolution 1718, the North Korean Foreign Ministry issued a statement saying, "We will never join the Six-Party Talks again," and "We will not be bound by any agreement." According to the (North) Korean Central News Agency, the North will "fully reprocess" the spent fuel rods from the Yongbyon Nuclear Complex and take steps to restore the nuclear facilities to their original state. The statement went on to say, "(North Korea) will continue to bolster (its) nuclear deterrent for self defense." The statement also said that the North will "positively consider building its own light-water nuclear reactor to complete its nuclear-powered industrial structure" and that "under international laws, including the Outer Space Treaty, we will continue to exercise our independent right to use space," hinting at its continued efforts to test-fire long-range rockets. The Foreign Ministry statement went on to say, "The spirit of respecting each other's autonomy and sovereignty, which is specified in the September 19 Joint Statement on the denuclearization of the Korean Peninsula, is the basis and life of the Six-Party Talks," arguing, "Now that the Six-Party Talks have turned into a platform for infringing upon our sovereignty and seeking our disarmament and the overthrow of our system, the Six-Party Talks have irreversibly lost their reason for being." North Korea said in the statement that it has no choice but to bolster its nuclear deterrent capability against increased military threats from hostile countries. The statement also said that North Korea will restart and strengthen its efforts to develop nuclear programs, including the restoration of nuclear facilities and the reprocessing of spent fuel rods. In the statement, North Korea noted that it would be a great mistake if the hostile countries thought that they could force North Korea to surrender. The statement went on to say that even if the Six-Party Talks were scrapped and the denuclearization process derailed, North Korea would maintain peace and security of the Korean Peninsula in a responsible manner through its mighty military power. North Korea declared the UN Security Council's presidential statement to be a hostile act taken by the U.S. and "its followers (who are opposed) to (North Korea's) peaceful satellite launch" under the pretext of the UN Security Council. North Korea severely denounced that taking issue with its rocket launch is an intolerable insult to its people and an unacceptable criminal act. Regarding the international community's assertion that North Korea's satellite launch is aimed at enhancing its long-distance missile capability, the North refuted in the statement that the nature of the situation does not lie there. North Korea added that what is serious is that the UN Security Council's standard of behavior depends (only) on (the country) executing a launch, regardless of whether what is being launched is a satellite or a missile. The North Korean statement said that according to U.S. logic, Japan SEOUL 00000600 006 OF 006 can carry out a satellite launch because it is a "puppet" of the U.S. while the North should not because it has a different (political) system and is not compliant. North Korea went on to say that it is the UN Security Council that swallowed this "burglar" logic of the U.S., railing against UN Security Council permanent members. The statement added that (the adoption of the UNSC's presidential statement) clearly shows that sovereignty equality and fairness under the UN Charter is merely empty rhetoric and only the logic of power works in international relations. STEPHENS