Weapons of Mass Destruction (WMD)

(...)

QUESTION: To North Korea. There seems to be some misunderstandings out there. I'm sure they are not here in the building or up on the Hill, but there seems to be some misunderstandings about what the status of KEDO and KEDO funding is for fiscal 03. Can you bring us up to date as to what your stance is right now vis-à-vis the Hill and asking for money for KEDO?

MR. BOUCHER: The administration is seeking $3.5 million in contingency funding for the Korean Peninsula Energy Development Organization for Fiscal Year 2003. No part of this funding would go to fund heavy fuel oil shipments or light water reactor construction. The funds would be used only for contributions to the organization's administrative expenses should we determine that such funding continues to be in our interest.

We are not prejudging the decisions on the organization's future. Proposals for funds is intended to maintain the flexibility we need to achieve our global nonproliferation goals.

QUESTION: Okay. But there was some idea apparently floating around on the Hill that this money could actually be used to shut the KEDO office down. It's in New York, yes? Is that at all correct?

MR. BOUCHER: I really don't want to describe it one way or the other. The board of KEDO will decide whatever decisions it makes on construction and other activities. We want this money to do whatever it is we decide to do for the people in KEDO.

QUESTION: Okay, so the idea is that this money would allow you to keep your hand in any continuing KEDO operations?

MR. BOUCHER: This is our contribution -- our percentage of the administrative expenses of the organization. This allows us to keep funding the organization should that be how we decide to pursue our goals.

QUESTION: This amount, though, is far less than what you were asking for at this time last year.

MR. BOUCHER: It's far less than the tens of millions that would be required to buy heavy fuel oil. Yes.

QUESTION: Is that, in fact, a full one year's contribution to the regular administrative operations of KEDO?

MR. BOUCHER: Again, it's a contingency funding. So how much or all of that that we would commit at any given moment will be a decision that we'll make at the appropriate time, but we need to have money if we may want to spend it to continue to fund the expenses of the organization -- our share.

QUESTION: Do you happen to know, is it an equal share divided between the EU and the --

MR. BOUCHER: No. We've got a percentage. I don't remember exactly what it is, but it's sort of like many international organizations. Different participants pay different shares.

I think we have one in the back.

QUESTION: If you do decide to resume oil and other payments, you'd have to go for a supplementary funding request in fiscal 03?

MR. BOUCHER: I don't know exactly where the money might -- I mean, it's speculative at this point. We have not put in for that kind of funding, so the money would have to come from somewhere, but I don't know what form that might take.

(...)
[End]