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19 April 2000

Text: Congressman Saxton on Possible IMF Lending to North Korea

(Lending to North Korea would be "inappropriate") (530)
International Monetary Fund (IMF) lending to North Korea in the
foreseeable future would be inappropriate and would spark intense
opposition in Congress, Vice Chairman Jim Saxton (Republican of New
Jersey) of the Joint Economic Committee (JEC) said in an April 18
press release.
Saxton's comments came in response to a wire story from Seoul quoting
IMF official David T. Coe as saying IMF lending to North Korea "could
be possible in the short run if there was a desire by North Korea
first of all and equally by the key donator countries, the United
States, Japan, South Korea and European countries."
Following is the text of the press release:
(begin text)
April 18, 2000
POTENTIAL IMF LENDING TO NORTH KOREA RAISES NEW QUESTIONS
New IMF Foreign Aid Controversy Sparked by Official's Remarks
WASHINGTON, D.C. -- International Monetary Fund (IMF) lending to North
Korea in the foreseeable future would be inappropriate and spark
intense opposition in Congress, Vice Chairman Jim Saxton of the Joint
Economic Committee (JEC) said today. Saxton's comments came in
response to a wire story from Seoul quoting IMF official David T. Coe
saying of IMF lending to North Korea, "It could be possible in the
short run if there was a desire by North Korea first of all and
equally by the key donator countries, the United States, Japan, South
Korea and European countries."
"Raising the prospect of IMF lending to North Korea at this juncture
raises a number of questions about IMF lending policies," Saxton said.
"Presumably, the IMF would wait at least until the question of North
Korean membership in the IMF was resolved at some point in the future.
Any attempt to extend IMF credit until this question is settled would
be sure to spark a controversy over a range of issues related to
foreign policy, foreign aid, and the appropriate role of the IMF.
"Furthermore, full consultation between the Administration and the
Congress would be necessary to address the issue of North Korean
membership in the IMF or any use of IMF credit to benefit North Korea.
As a member of the House Armed Services Committee, I can say that
there would be quite a negative response to the prospect of IMF
lending to North Korea for the foreseeable future.
"This may be an IMF trial balloon similar to the statement of a Fund
official in 1998 that the IMF was 'moving towards a form of
normalization' with Iraq. In this case, my drawing public attention to
this statement worked to cancel this 'movement,' including a proposed
mission to Iraq. I hope that once policy makers have a chance to
consider the prospect of IMF loans to North Korea, this idea will also
be shelved. While we are all sympathetic with the plight of the people
of North Korea, the provision of IMF resources to the dictatorship of
that nation would not benefit ordinary citizens," Saxton concluded.
(end text)
(Distributed by the Office of International Information Programs, U.S.
Department of State. Web site: http://usinfo.state.gov)