SEOUL - PRESS BULLETIN; April 24, 2009

UNCLAS SECTION 01 OF 03 SEOUL 000664 SIPDIS E.O. 12958: N/A TAGS: PREL PGOV MARR ECON KPAO KS US SUBJECT: SEOUL - PRESS BULLETIN; April 24, 2009 TOP HEADLINES -------------- Chosun Ilbo Kwak Seung-joon, Head of Presidential Council for Future and Vision: "Private Cram Schools will be Prohibited from Offering Late-Hour Classes after 10 p.m. as Early as This Summer" JoongAng Ilbo Increasing Number of Companies Introducing Employee Assistance Program (EAP) to Address Whatever Problems are Affecting Employees' Productivity Dong-a Ilbo ROK Companies in Kaesong: "We Cannot Raise Wages of N. Korean Workers by Over 5 Percent, Unless the North Ensures Inter-Korean Passage, Communication and Customs Clearance Procedures" Hankook Ilbo ROKG Mulls Indirect Financial Support for Companies in Kaesong, which Stand to Suffer from N. Korea's End of "Special Benefits," Including Low Wages for N. Korean Employees Hankyoreh Shinmun Prosecutors Searched Seven Years of Emails of Progressive Former Candidate for Seoul's Top Education Post, Raising Concerns over Privacy Infringement Segye Ilbo Former President Roh to be Summoned as Early as April 30 in Bribery Scandal Seoul Shinmun, All TVs ROKG to Inject 8.7 Trillion Won into Shipping Industry DOMESTIC DEVELOPMENTS -------------- According to a Blue House official, the ROKG will propose an additional meeting with North Korea around next week to discuss the joint Kaesong Industrial Complex in the North. (Chosun, all TVs) INTERNATIONAL NEWS -------------- Secretary of State Hillary Clinton has apparently decided on a different North Korea policy from the one she planned three months ago. At an April 22 House Foreign Affairs Committee hearing, Secretary Clinton clarified the Administration's position on stabilization efforts in Afghanistan, Taliban expansion in Pakistan, Middle East issues, and Iran's nuclear program, but did not say anything about North Korea. Nor did she mention the Six-Party Nuclear Talks. (Chosun) Secretary Clinton's only mention of North Korea was in a reply to a question by Republican Rep. Dan Burton when she said, "I think we have to be strong, patient and persistent and not give in to the kind of back-and-forth, unpredictable behavior of the North Korean regime." (Chosun, Dong-a, Hankook, Hankyoreh, Segye, Seoul) The UN will soon announce a list of North Korean companies subject to sanctions over the North's long-range rocket launch earlier this month. Around 10 North Korean firms are likely to be placed on the UN blacklist. (Chosun, all TVs) According to Russia's Interfax news agency, Russian Foreign Minister Sergei Lavrov said, after talks with his North Korean counterpart in Pyongyang yesterday, that it would be difficult to resume the SEOUL 00000664 002 OF 003 Six-Party Talks soon. The North asked Russia to write off its $8 billion debt. (Dong-a) MEDIA ANALYSIS -------------- -North Korea -------------- Most ROK media gave attention to Secretary of State Hillary Clinton's testimony at an April 22 House Foreign Affairs Committee hearing. They noted that Secretary Clinton did not say anything about North Korea, nor did she mention the Six-Party Nuclear Talks, while clarifying the Administration's position on stabilization efforts in Afghanistan, Taliban expansion in Pakistan, Middle East issues, and Iran's nuclear program. Conservative Chosun Ilbo, in particular, compared this testimony with Secretary Clinton's Jan. 13 confirmation hearing, in which she said, "We will... act with urgency to prevent proliferation in North Korea and Iran ..." and commented that Secretary Clinton has apparently decided on a different North Korea policy from the one she planned three months ago. Secretary Clinton was widely quoted as saying in a reply to a question by Republican Rep. Dan Burton: "I think we have to be strong, patient and persistent and not give in to the kind of back-and-forth, unpredictable behavior of the North Korean regime." Moderate Seoul Shinmun editorialized: "It has become evident that North Korea has nothing to gain without returning to the negotiation table. ... North Korea should no longer drive itself into a corner and return to the table. The only way for the North to survive is by agreeing to resume inter-Korean talks and the Six-Party Talks." Conservative Chosun Ilbo and all TV networks reported that the UN will soon announce a list of North Korean companies subject to sanctions over the North's long-range rocket launch earlier this month. The media outlets surmised that around 10 North Korean firms are likely to be placed on the UN blacklist. Conservative Dong-a Ilbo replayed an April 23 report by Russia's Interfax news agency quoting Russian Foreign Minister Sergei Lavrov as saying after talks with his North Korean counterpart in Pyongyang yesterday that it would be difficult to resume the Six-Party Talks soon. The report also said that the North asked Russia to write off its $8 billion debt. OPINIONS/EDITORIALS -------------- KORUS FTA SHOULD BE USED AS A LEVER TO ENHANCE U.S.-ROK COOPERATION (JoongAng Ilbo, April 24, 2009, Page 42) The National Assembly Committee on Unification, Foreign Affairs and Trade passed a bill ratifying the U.S.-ROK Free Trade Agreement (FTA) yesterday with some difficulty. Considering that violence was rampant last year at the National Assembly due to strong opposition from some lawmakers armed with hammers and power saws, it is fortunate that the bill was addressed relatively smoothly at the Standing Committee despite unexpected behavior by some opposition lawmakers. The U.S.-ROK FTA overcame the first hurdle at the National Assembly, 22 months after the deal was reached in June, ¶2007. Now the remaining work is to get the deal approved by the National Assembly floor and the U.S. Congress. In light of the tortuous road that the U.S.-ROK FTA has taken so far, there is no guarantee that the remaining process will proceed without a hitch. However, now that the ROK has taken one more step forward in the process of ratifying the trade pact, we find it hopeful that the U.S.-ROK FTA is making headway after many twists and turns. Up to now we have consistently argued that both the ROK and the U.S. SEOUL 00000664 003 OF 003 should complete the process for ratifying the FTA as early as possible. Still, as the possibility of renegotiating the deal is being raised after the change of government in the U.S. and changes in the U.S. political landscape, we believe that the ROK needs to respond carefully, and not in a hasty manner, to any call for renegotiation. However, now that the National Assembly has restarted the ratification procedure, the ROK needs to show a strong will to push for ratification, rather than taking a lackadaisical attitude with possible renegotiations in mind. In other words, the ROK should accelerate the FTA ratification by the National Assembly floor and actively ask the U.S. to approve the deal. Opportunely, the U.S. is moving positively toward (ratifying) the FTA. President Barack Obama expressed strong interest in advancing the trade pact at the G20 Summit early this month. The Office of the United States Trade Representative (USTR) also said the U.S. wants to deal with the trade agreement without renegotiation. In a turn of events, in a letter sent to President Obama on April 20, U.S. Senate Finance Committee Chairman Max Baucus and Senator Charles Grassley called for early ratification of the FTA in an effort to strengthen the U.S-ROK alliance. The U.S. Congress still argues that automotive and beef issues should be rectified. However, these issues can be technically addressed without renegotiation. Now it is important to end political controversies and time-wasting conflicts over the KORUS FTA and call for the U.S. to proceed with ratifying the trade deal. The Democratic Party, which was opposed to the FTA ratification, reassuringly has started to show passive support. If the National Assembly finalizes ratification of the FTA prior to the U.S.-ROK summit scheduled for June, this could be used as an effective strategic card to bolster President Lee Myung-bak's position during the bilateral summit. STEPHENS