SEOUL - PRESS BULLETIN; June 5, 2009

UNCLAS SECTION 01 OF 06 SEOUL 000893 SIPDIS E.O. 12958: N/A TAGS: PREL PGOV MARR ECON KPAO KS US SUBJECT: SEOUL - PRESS BULLETIN; June 5, 2009 TOP HEADLINES -------------- Chosun Ilbo Former Vice President Al Gore Poised to Visit Pyongyang for Release of Two U.S. Journalists Held in N. Korea JoongAng Ilbo "Nuclear Renaissance" Is Coming As More Countries Turn to Nuclear Energy amid High Oil Prices and Rising Awareness about Global Warming, ROK Hopes to Cash In Dong-a Ilbo, Hankook Ilbo, Seoul Shinmun ¶N. Korean Patrol Boat Crosses Sea Border in Yellow Sea Hankyoreh Shinmun Ruling GNP Lawmakers: "President Should Admit Mistake in Taking Go-It-Alone Approach" Segye Ilbo ROK-U.S. Combined Forces Command (CFC): "We are Not Considering Raising Defense Readiness Condition (DEFCON),Since There are No Decisive Signs of N. Korean Provocation" DOMESTIC DEVELOPMENTS -------------- The U.S. has informed the ROKG of its decision to undertake intensive financial sanctions against North Korea, separately from a new resolution on the North being pushed at the UN Security Council. (Chosun) According to a Blue House official, the visiting U.S. delegation led by Deputy Secretary of State James Steinberg briefed President Lee Myung-bak and other officials yesterday on independent U.S. sanctions "with a financial focus" against the North. (Chosun) In a related development, U.S. Under Secretary of Treasury for Terrorism and Financial Intelligence Stuart Levey met with Vice Finance Minister Huh Kyung-wook to discuss ways to block North Korea's illegal money laundering. (JoongAng, Dong-a, Hankook, KBS) According to the ROK Joint Chiefs of Staff, a North Korean patrol boat yesterday crossed the Northern Limit Line (NLL),a de-facto maritime border in the Yellow Sea, before returning to the North after about an hour. (All) The U.S. Ambassador to the ROK, Kathleen Stephens, in a June 4 seminar hosted by the Korea News Editors' Association, said that if North Korea continues to develop nuclear weapons and missiles, the U.S. and its allies should consider appropriate defensive measures. (Chosun, JoongAng, Dong-a, Segye) International Developments -------------- According to the foreign media, President Barack Obama, in a June 4 speech at Cairo University, called for a "new beginning between the U.S. and Muslims." He was widely quoted: "I have come here to Cairo to seek a new beginning between the U.S. and Muslims around the world. ... This cycle of suspicion and discord must end." (All) President Obama also mentioned the ROK as an example of successfully developing its economy while keeping its tradition. (All) The (North) Korean Central News Agency reported yesterday that the North's Central Court began the trial of the two U.S. journalists - who have been held in the North since March 17 - at 3 p.m. yesterday "on the basis of the indictment already brought against them." (All) SEOUL 00000893 002 OF 006 A diplomatic source, meanwhile, raised the possibility that, depending on their trial results, former Vice President Al Gore, a founder of San Francisco-based Current TV where the two journalists work, may visit North Korea via Beijing as early as this weekend to take the journalists out of the North. (Chosun) Deputy State Department Spokesman Philip Crowley, in a June 3 regular briefing, said: "To list a country on the terrorism list, there is a legal requirement there. And what we've seen so far (such as North Korea's missile launches) I don't think meets that legal test." This statement came in response to a June 2 letter from several U.S. senators to Secretary of State Hillary Clinton for the North's relisting as a state sponsor of terrorism. (Dong-a, Segye, Seoul, all TVs) MEDIA ANALYSIS -------------- -President Obama's Cairo Speech -------------- All ROK newspapers led their international news section with a report on President Barack Obama's June 4 speech at Cairo University. All TV networks also covered the event, but online news outlets, except for two minor outlets, Christian Daily and edaily, did not. All media coverage is positive. Citing the foreign media, most newspapers and TV networks reported that both the Arab world and Israel welcomed President Obama's speech, citing Palestine President Mahmud Abbas's Spokesman Nabil Abu Rudeina: "It is an innovative political step and a good beginning on which one must build." The Israeli government's statement was also quoted: "Israel shares President Obama's hope to end conflicts with the Arab world and to lead a new era of reconciliation." Most coverage focused on Obama's statements: "America will not turn our backs on the legitimate Palestinian aspiration for dignity, opportunity, and a state of their own;" and "no system of government can or should be imposed upon one nation by any other." Most ROK media also highlighted President Obama's mention of the ROK as an example of successfully developing its economy while keeping its tradition. Newspapers carried the following headlines: "I Have Come Here to Seek a New Beginning between the U.S. and Muslims" (Conservative Chosun Ilbo, right-of-center JoongAng Ilbo, conservative Dong-a Ilbo, conservative Segye Ilbo); "This Cycle of Suspicion and Discord Must End" (moderate Hankook Ilbo); and "Obama Delivers Speech of Reconciliation to 1.5 Billion Muslims" (left-leaning Hankyoreh Shinmun) -North Korea -------------- - Detained Journalists Trial All ROK media gave prominent coverage to a report citing the (North) Korean Central News Agency that North Korea's Central Court began the trial of the two U.S. journalists - who have been held in the North since March 17 - at 3 p.m. yesterday "on the basis of the indictment already brought against them." Conservative Choun Ilbo noted in its front-page report that this is the first time that American citizens have stood trial in a North Korean court and it is also unprecedented for the North to announce the time of the trial. Chosun quoted an ROKG official: "It seems that North Korea is attempting to take advantage of this incident (to improve) negotiations with the U.S." The Chosun report further quoted a diplomatic source: "Depending on their trial results, there is a great likelihood that former Vice President Al Gore, a founder of San Francisco-based Current TV for SEOUL 00000893 003 OF 006 which the two journalists work, may visit North Korea via Beijing as early as this weekend to take the journalists out of the North." Chosun Ilbo carried a different, inside-page report entitled "Attention Focused on Whether Al Gore Will Act as Special Envoy to Deliver President Obama's message to Pyongyang." In a related development, right-of-center JoongAng Ilbo editorialized: "The detention of an ROK worker in the Kaesong Industrial Complex has now dragged on into its 67th day. The ROKG and Hyundai Asan have raised the issue daily... but Pyongyang has not yet made any response. ... This North Korean attitude has been markedly different from its treatment of the two female American journalists it detained. ... This is outrageous. ... What is the difference between the North and a terrorist group that abducts a person in broad daylight and holds him hostage?" - Deputy Secretary Steinberg in Seoul Conservative Chosun Ilbo front-paged a report citing a senior Blue House official that the visiting U.S. delegation led by Deputy Secretary of State James Steinberg briefed President Lee Myung-bak and other officials yesterday on independent U.S. sanctions "with a financial focus" against North Korea. The sanctions are expected to be an expanded version of a 2006 freeze of North Korean accounts in Macau-based Banco Delta Asia (BDA),according to the Chosun report. Chosun quoted the Blue House official: "At the time, the sanctions were slapped on a single bank, but the new sanctions would ban transactions with any banks suspected of being involved in the trade of North Korea's weapons of mass destruction." Right-of-center JoongAng Ilbo, conservative Dong-a Ilbo, moderate Hankook Ilbo and KBS TV reported on yesterday's meeting between Under Secretary of Treasury for Terrorism and Financial Intelligence Stuart Levey and ROK Vice Finance Minister Huh Kyung-wook. According to the media, citing an unnamed Finance Ministry source, the two officials agreed to cooperate to prevent North Korea's illegal money laundering. OPINIONS/EDITORIALS -------------- RELEASE KAESONG DETAINEE (JoongAng Ilbo, June 5, 2009, page 42) The detention of an ROK worker in the Kaesong Industrial Complex has now dragged on into its 67th day. The ROKG and Hyundai Asan have raised the issue daily through the Kaesong Industrial Complex Management Commission, but Pyongyang has not yet made any response, except to announce twice that it was investigating the case. This North Korean attitude has been markedly different from its treatment of the two female American journalists it detained. The two journalists, whom the North held a trial for yesterday, have been staying in a hotel, not a prison, and were allowed to talk with their families in the United States by telephone. This is outrageous. North Korea has frequently talked about the self-reliance of Korean nationals but it detains an ROK citizen and won't even inform his government whether he is alive or not. Even though North Korea is notorious for human rights violations, the treatment of the worker, named Yoo, cannot be tolerated. It ignores international customary norms and the agreed-upon terms by the ROK and the North for handling each other's citizens. North Korea is a state but what is the difference between the North and a terrorist group that abducts a person in broad daylight and holds him hostage? In North Korea, a person who is charged with espionage or an act of opposing the communist revolution is reportedly arrested by the top intelligence agency, investigated for up to a year, shot without trial or imprisoned as a political prisoner. The person is not allowed to see his family and the family is not even informed of the person's arrest. In the end, the family is also locked away as SEOUL 00000893 004 OF 006 political prisoners. Until now, Yoo has been treated in the same way as a North Korean who has committed treachery. The ROKG's response has been meek. Apart from the Reunification Ministry, no other government agencies have tackled the issue. In 2007 when Korean citizens were kidnapped by the Taliban in Afghanistan, the government paid a huge sum of money to bring them home, despite international criticism. What are the Ministry of Foreign Affairs and Trade, the National Intelligence Service and the Blue House doing now? We urge the government to respond to the case more actively and assertively. In all international meetings that North Korea attends, our government must highlight Yoo's case and put pressure on Pyongyang. At the very least, Seoul can conduct negotiations in s-e-c-r-e-t and pay a ransom to bring him home. (This is a translation provided by the newspaper, and it is identical to the Korean version.) FEATURES -------------- FORMER VICE PRESIDENT AL GORE POISED TO VISIT PYONGYANG FOR RELEASE OF DETAINED TWO U.S. JOURNALISTS (Chosun Ilbo, June 5, 2009, Front page) By Reporters Ahn Yong-hyun and Lim Min-hyuk The (North) Korean Central News Agency reported on June 4 that the North's Central Court began the trial of the two U.S. journalists, Laura Ling and Euna Lee on the basis of the indictment already brought against them. This is the first time that American citizens have stood trial in a North Korean court and it is also unprecedented for the North to announce the time of trial. The date of the trial was announced on May 14. An ROKG official speculated that it seems that North Korea is attempting to take advantage of this incident (to improve) negotiations with the U.S. A diplomatic source said that depending on their trial results, there is a great likelihood that former Vice President Al Gore, a founder of San Francisco-based Current TV for which the two journalists work, may visit North Korea as early as this weekend to take the journalists out of the North. Some observers believe that the plans by the U.S. delegation, led by Deputy Secretary Steinberg, to stay in Beijing during the weekend after its visit to the ROK is related to Al Gore's (possible) visit to North Korea. In the past when North Korea took an American into custody, it allowed a U.S. special envoy to visit the country (to negotiate his release). ROK authorities said that, given the past record, former Vice President Al Gore will likely take the reporters out of North Korea by paying the "costs of stay" which North Korea is expected to request. Asked whether he is considering visiting North Korea during a May 15 interview with CNN, he said he would do everything including that option. He added, however, that his visit to North Korea may not yield results because North Korea is a different country (from the rest of the world). Attention focused on whether Al Gore will act as special envoy to deliver President Obama's message to Pyongyang. Former Vice President Gore is seeking to visit North Korea in his capacity as a civilian who is the founder of Current TV, not in any governmental capacity. In a regular press briefing, Deputy State Department Spokesman Philip Crowley said that the U.S. government does not have information about his visit because he is a civilian. Crowley also noted that for now the U.S. has no intention of relisting North Korea as a state sponsor of terrorism. Observers say that (the government) made the statement (that it has no intention to relist North Korea) in consideration of the trial of the detained female reporters and Gore's (possible) visit to North Korea. Shortly after North Korea's May 25 second nuclear test, the U.S. State Department said that it may consider putting North Korea SEOUL 00000893 005 OF 006 back on the list of state sponsors of terrorism. All attention is focused on whether Al Gore can act as special envoy to deliver President Obama's message to North Korean leader Kim Jong-il. It is noteworthy that on May 26, immediately after its nuclear test, North Korea allowed the two reporters to have a phone conversation with their families in the U.S. A diplomatic source said that this may be North Korea's conciliatory gesture toward the U.S. Also, North Korea allowed a Swedish Embassy official in Pyongyang to meet them three times. This lenient attitude by North Korea is in stark contrast with its attitude toward a Hyundai Asan employee who has been detained in the North for 67 days. Many observers speculate that the U.S. and North Korea have largely reached an agreement on how to deal with this issue through the Swedish Embassy in Pyongyang or through the "New York channel (contacts between North Korean diplomats and U.S. officials at the UN)." A diplomatic source said, however, "With talk of the U.S.'s financial sanctions on North Korea emerging, we cannot rule out the possibility that the North might behave capriciously." A key ROKG official noted, "To my knowledge, although the U.S. proposed former Vice President Al Gore's visit to North Korea, the North has yet to give its final 'OK.'" Even if there isn't a favorable verdict for the journalists, he may visit Pyongyang to reaffirm Washington's willingness to have high-level talks with the North. When U.S. Army Chief Warrant Officer Bobby Hall was taken into custody in North Korea in 1994 after his army helicopter crossed the border, and Korean-American Evan Hunziker entered North Korea in 1996 by swimming across the Yalu River, then-Representative Bill Richardson visited North Korea to win their release. If the visit by former Vice President Gore's visit to Pyongyang takes place, it is expected to serve as a significant variable in U.S.-North Korea relations, which have been deteriorating due to North Korea's nuclear test and intercontinental ballistic missile preparations. When war clouds hung over the Korean Peninsula during the first North Korean nuclear crisis in 1994, former President Jimmy Carter broke the deadlock by meeting with then-North Korean leader Kim Il-sung in Pyongyang and mediating the inter-Korean summit. In October, 2000, then-U.S. Secretary of State Albright visited North Korea and discussed then-U.S. President Clinton's visit to the country. There is also a possibility that former Vice President Gore may meet with Chairman Kim Jong-il. An ROKG official noted, "If former Vice President Gore visits the North, we will have to ask him to help resolve the issue of an ROK detainee surnamed Yu in the North." The two U.S. journalists were arrested by the North 80 days ago on March 17 while reporting on the human rights of North Korean female refugees near the China-North Korea border. They are charged with "illegal entry" and "hostile acts against North Korea." U.S. TO UNDERTAKE FINANCIAL SANCTIONS AGAINST NORTH KOREA (Chosun Ilbo, June 5, 2009, Front page) By Reporter Lim Min-hyuk The U.S has informed the ROKG of its decision to undertake intensive financial sanctions against North Korea, separately from a new resolution on sanctions against North Korea being pushed at the UN Security Council. The sanctions are expected to be an expanded version of a 2006 freeze of North Korean accounts in Macau-based Banco Delta Asia (BDA). According to a Blue House official, the visiting U.S. delegation led by Deputy Secretary of State James Steinberg briefed President Lee Myung-bak and other officials yesterday on independent U.S. sanctions "with a financial focus" against North Korea. The official said that at the time, the sanctions were slapped on a single bank, but the new sanctions would ban transactions with any banks suspected of being involved in the trade of North Korea's weapons of mass destruction. SEOUL 00000893 006 OF 006 Diplomatic sources said that this time, the U.S. will impose comprehensive sanctions against all banks suspected of being involved in currency counterfeiting and money laundering as well as the trade of weapons of mass destruction. The U.S. aims to curtail the North's financial dealings (with the outside world). The U.S. Treasury has reportedly finished a legal review of its own sanctions policy against North Korea. According to the International Emergency Economic Powers Act (IEEPA) enacted in 1977, the U.S. president is authorized to declare the existence of an unusual and extraordinary threat to national security, foreign policy or economy and can then block transactions and freeze assets to deal with the threat. The "Patriot Act" which served as the basis for BDA sanctions is still effective. During a June 3 interview with the media, Foreign Minister Yu Myung-hwan said that the U.S. has not punished North Korea for its illegal acts in order to continue to talk with North Korea but now there is no ground for the U.S. not to apply its domestic law. U.S. Under Secretary of Treasury for Terrorism and Financial Intelligence Levey reportedly met with Vice Finance Minister Hur Kyung-wook and Chairman of Korea Federation of Banks Shin Dong-Kyu to consult this matter. To ensure that the expanded version of BDA sanctions pays off, the U.S. needs cooperation from China since a significant proportion of North Korea's money circulation depends on China. In the past, China expressed strong displeasure over the BDA sanctions. During a meeting with President Lee Myung-bak, Deputy Secretary Steinberg said that it seems that North Korea is not realizing that China has changed in position. He added that it is a great mistake for North Korea to think that it can get what it wants through negotiations after carrying out provocations, as it did in the past. Japan is also considering financial sanctions. A Blue Office official said that Tokyo has already taken independent sanctions against the North in terms of money remittance and trade. After the North launched a long-range rocket in April, Japan lowered the ceiling for remittances to the North from 30 million yen to 10 million yen and is apparently considering banning remittances and trade fully. STEPHENS