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DATE=6/19/2000
TYPE=CORRESPONDENT REPORT
TITLE=U-S-KOREA SANCTIONS (L-UPDATE)
NUMBER=2-263543
BYLINE=DAVID GOLLUST
DATELINE=WHITE HOUSE
CONTENT=
VOICED AT:
INTRO:  The Clinton administration has eased economic 
sanctions against North Korea - issuing rules that will 
allow trade in non-military goods and direct flights to 
that country.  The announcement of the decision comes one 
week after last week's North-South Korean summit. VOA's 
David Gollust reports from the White House.
TEXT:  The easing of the sanctions dating back to the 
Korean War of the early 1950's came without fanfare.  The 
new trade rules were posted in the Federal Register, a U-S 
government publication. The new policy allows trade in non-
military goods, investments in North Korea, and service by 
American ships and air liners. 
U-S counter-terrorism and weapons-proliferation sanctions 
against North Korea remain in effect, barring sales of 
military and dual-use products.  The United States will 
continue to oppose international loans to North Korea and 
provide only humanitarian aid to Pyongyang.
State Department spokesman Richard Boucher cautions against 
expectations of a surge in trade with the communist state, 
given its troubled economy and widespread poverty:
///Boucher actuality///
I'm not forecasting some explosion in trade or some 
particular product that would be traded. The point is that 
we're allowing those decisions to be made by commercial 
people on a commercial basis.
///end act///
The administration decided to ease the economic sanctions 
last September following contacts with the Pyongyang 
government by former Defense Secretary William Perry and a 
North Korean pledge to refrain from further testing of 
long-range ballistic missiles.
Implementation of the new trade rules was to have been 
contingent on a ground-breaking U-S visit by a senior North 
Korean envoy which has yet to materialize. 
The administration decided to go ahead with the lowering of 
sanctions anyway - timing the action to follow last week's 
historic Korean summit.  The aim is to giving further 
momentum to the improving political climate on the 
peninsula.
The Clinton White House has warmly welcomed the summit, 
though it says it is not changing its assessment of the 
security threat posed by North Korea and is not considering 
any reduction in the 37-thousand strong U-S troop presence 
in the south.
Sunday, the newspaper of the North Korean communist party 
condemned the United States as "imperialist" and accused it 
of increasing the danger of a another Korean war by 
refusing to discuss a troop withdrawal.
At the State Department, spokesman Boucher said it was 
puzzling that what he called "outdated rhetoric" had 
appeared in the North Korean media at this time. He 
stressed U-S support for South Korean President Kim Dae-
Jung's summit initiative, and said any implication that the 
United States sought increased tensions is "just plain 
wrong."
He said American troops are in Korea for as long as the 
South Korean and U-S governments believe they are necessary 
for defense. (Signed)
NEB/DAG/KBK
19-Jun-2000 15:21 PM LOC (19-Jun-2000 1921 UTC)
NNNN
Source: Voice of America
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