Korean Unification Bulletin ( No.50 Dec, 2002)
Working-level
Contact for the Construction of Gaeseong
Industrial
Complex
South and North Korea held a working-level meeting on December 6-8 at Mt. Geumgang to discuss matters concerning the construction of Gaeseong Industrial Complex in the North, in compliance with the agreement reached at the third Inter-Korean Economic Cooperation Promotion Committee meeting.
At the meeting, the two parties discussed various issues such as setting up construction dates and securing institutional guarantees over the procedures for communication, customs and quarantine, along with other issues concerning the Law Governing the Gaeseong Industrial District and its ubordinate regulations.Ó
The two sides also agreed that the construction work would start sometime between December 26-30, with specific dates to be determined by businesses involved, and that the Gyeongui Rail Line would open temporarily to accommodate the construction work. The two parties also adopted a statement of agreement on matters involving communication, customs, and quarantine.
In signing the agreement on communication, customs and quarantine, the two delegations consented that the agreement would be ratified later when relevant documents are exchanged.
Major Points of Agreement
The essential elements of agreement reached at the working-level meeting are as follows:
The construction work shall begin sometime between December 26-30, with the dates to be determined among the businesses involved.
The road connecting Gaeseong and Munsan will open temporarily to accommodate efficient transport of personnel and materials required for the construction work.
North Korea shall legislate and promulgate the ÈÂubordinate regulations (of the Law Governing the Gaeseong Industrial District) designed to monitor labor, tax and business start-ups, before the construction work begins; the South will actively assist in promoting negotiations between contractors and businesses developing the Gaeseong industrial complex so that infrastructure for the industrial complex can be completed at an early time.
South and North Korea shall adopt an agreement on measures concerning communication, customs and quarantine; the two parties will take necessary steps for the ratification of the agreement and exchange the authorizing documents.
The two sides also agreed to continue consultation over additional issues relating to the construction work, either in writing or through working-level contacts.
Significance and Achievement
At the December 6-8 working level meeting, South and North Korea successfully wrapped up important issues regarding preliminary measures required for the construction of the Gaeseong Industrial Complex. Of particular significance, they agreed to implement a set of institutional mechanisms so as to ensure efficient transport of personnel and construction materials. Equally significant, the North pledged to legislate the ubordinate regulations of the Law Governing the Gaeseong Industrial District reflecting the demands of South Korean businesses.
The decision to temporarily open the Gyeongui Rail Line is also an important achievement as it would help save time and costs in transporting construction personnel, materials, and equipment. The use of the railway is a clear indication that the two Koreas intend to pursue their economic cooperation projects in earnest.
With regard to questions and issues that may arise in the future, the two parties agreed to consult with each other in writing or through working-level contacts.
The Results of 3rd Working-level Contact on Inter-Korean Railway and Highway Reconnection
Joint Press Statement of the 3rd Working-level Contact on Inter-Korean Railway and Highway Reconnection
The 3rd contact for working-level consultations on the reconnection of the inter-Korean railway and highway took place in Mt. Geumgang from December 15-17, 2002.
Reconfirming each other's intentions on the project of connecting railway and highway, the South and the North agreed as follows after serious consultations about related working-level measures.
1. The South and the North agreed to make positive efforts so that the connection of inter-Korean railway and highway could be completed according to agreed schedules and to actively cooperate so that necessary materials and equipment could be provided in time for the work schedule.
2. The South and the North agreed to open to traffic before the start of work for the Gaeseong Industrial Complex an interim road to transport materials and equipment necessary for linking railway and highway and personnel and equipment for the construction of the complex. In connection, each side agreed to refer to consultations between the military authorities the opening of an interim road for the Seoul-Sinuiju Railway and the passage through an interim road for the East Sea Railway.
3. The South and the North agreed to put into effect a basic agreement on motor vehicle operations as soon as necessary signatures and exchange of instrument procedures are completed and to adopt a basic agreement on train operations by an exchange of instruments at an early date.
4. The two sides also agreed to hold the second meeting of working-level consultations on inter-Korean railway and highway in Pyongyang in mid-January 2003.
December 17, 2002
Mt. Geumgang
The Results of the
2nd Inter-Korean Red Cross Working-level
Contact
Joint Press Statement
South and North Korea held the Second Inter-Korean Red Cross Working-level Contact from December 15-17, 2002, in Mt. Geumgang.
During the contact, the South and the North discussed the location and design of the proposed Mt. Geumgang ¡¡eunion center and the composition of the romotion Team for the Construction of the Mt. Geumgang Reunion Center and agreed in principle on conducting the 6th round of reunion of separated families on the occasion of the coming lunar New Year¡¡ Day.
Both sides, however, will continue consultations, during their next round of contact, on the extent of the reunion center, confirmation of the whereabouts and addresses of the separated families, an expanded letter exchange and confirmation of the whereabouts and addresses of the people unaccounted for during the war.
The South and the North will continue their consultations during their third working-level contact in January 2003 on the basis of the discussions made during the present contact.
December 17, 2002
The Results of the 2nd Inter-Korean Working-level Contact on Shipping Cooperation
South and North Korea held their second working-level contact on shipping cooperations in Pyongyang on December 25-28, 2002 pursuant to the agreement reached at their first contact on shipping cooperation in Mt. Geumgang November 18-20, 2002.
The two sides discussed how to put in place a system to ensure smooth inter-Korean shipping operations, including defining sea routes and setting guidelines for the safe operation of ships and emergency rescue.
They adopted the 15-point Inter-Korean Shipping Agreement to promote inter-Korean shipping cooperation.
They wrapped up the second contact by agreeing to discuss adoption of an implementation annexe to the Shipping Agreement at the third contact scheduled for March 2003 in Seoul.
Major Points
a. Maritime Transportation and Designated Sea Routes
The two Koreas will guarantee safe navigation of vessels approved by a party and permitted by the other pursuant to the provisions of the Agreement and its annexe.
The two sides shall regard all the sea routes involved as inter-Korean sea routes.
The ports of the two sides shall stipulate the necessary operating procedures for a smooth shipping by eliminating potential causes of friction in advance.
The operation of ships between the two sides shall be defined as 횪abotage, under which South and North Korea will share proceeds generated from it.
b. Mutual Cooperation in Time of Maritime Accidents
The Agreement sets provisions for emergency shelter, rescue of personnel, disaster control and prevention of marine pollution in case one vessel collides with another, runs aground, capsizes or catches fire, as well as emergency evacuation of injured crew and passengers. If necessary, both sides will jointly perform rescue work, disaster control and prevention of marine pollution.
By laying down measures on rescue and emergency assistance, speedy action will be possible to save lives and keep the marine environment from pollution.
c. Shipping Communications
The Agreement guarantees a vessel navigating in the sea of the other party to send notice to her home company or its agent or the authorities of both parties.
A vessel is allowed to use means of emergency communication in case communication or maritime accidents occur in the sea of the other party.
The guarantee of direct communication from vessels at sea will not only result in reduced costs but also in prompt handling of urgent maritime situations, thus enhancing shipping efficiency. Currently, indirect communication is in force.
d. Exchange of Information and Technology
Maritime authorities of both sides will form and operate a communications network for the purpose of exchanging information about marine and weather information necessary for shipping operations.
Both sides can anticipate a swift response to accidents by exchanging in advance information about shipping operations and technologies related to shipping and ports. It will also contribute to the development of their maritime industries.
e. Formation and Operation of a Consultative Body Between the Maritime Authorities
Formation and operation of a government-level consultative body on maritime affairs for the purpose of promoting mutual cooperation and of preventing marine accidents will expedite exchanges and cooperate and build mutual trust.
Significance of the Results
The adoption of the Shipping Agreement has laid the framework for smooth and safe maritime transportation between the two Koreas.
Reaching an agreement on safe navigation, opening of sea routes and rescue work lays out the basic framework necessary for inter-Korean shipping.
Inter-Korean shipping will be stabilized since the current unofficial sea routes opened to traffic by the private sector will be elevated to government level with the adoption of the Agreement.
The Agreement would advance inter-Korean exchanges and cooperation a step further as it will lead to reduction in transportation costs between the two sides.
In particular, the projected construction of the Gaeseong Industrial Complex as well as the planned reconnection of cross-border rail and highway work will greatly benefit from the Agreement.
By defining the sea routes as cabotage and as inter-Korean routes, which would exclude third party ships, shipping revenues will remain on the peninsula in the interest of local shipping industries. As of September 2002, South Korean ships accounted for 18 percent of thevessels that participated in inter-Korean shipping.
Future Plans
South and North Korea will exchange the instruments of the Agreement after going through necessary ratification procedures.
Both sides will hold the third contact in March 2003 to adopt an annexe to the Agreement specifying details about the implementation.
The details will include procedures for vessel permits, shipping operations, designation of navigational routes, and composition and operation of a government-level consultative body.
Inter-Korean Trade During January to November (2002)
Two-way inter-Korean trade totaled $567 million during the first eleven months of the year, up 56.5 percent from the same period a year earlier. South Korea imported $248 million worth of goods from North Korea, a 59.3 percent jump year on year, while goods valued at $319 million were shipped to the North, a rise of 54.4 percent.
Major items brought in from the North were agricultural-fishery products, textiles and iron-steel and metal products. Northbound shipments included chemical-industrial goods, textiles and agricultural-fishery products.
So far this year, the South has posted a $70 million surplus in nominal trade, while the North registered a $181 million surplus, when non-trade transactions are excluded. Non-trade items included products provided to the North under inter-Korean cooperative projects and humanitarian assistance.
Of the total $567 million in trade, commercial transactions and trade based on processing-on-commission arrangements reached $312 million, accounting for 55.1 percent of the total. The remainder ($254 million) was of a non-trade nature such as inter-Korean cooperative projects and humanitarian assistance and made up 44.9 percent.
A total of 426 companies, including 108 involved in processing-on-commission arrangements, participated in the two-way trade of 550 items.
Meanwhile, inter-Korean trade in November stood at $126 million, up 29.3 percent from October.
North Korea Demands Dismantling of Nuclear Seals, Cameras
he Director-general of North Korea¡¡ Atomic Energy Demands IAEA to Dismantle Seals on Nuclear Facilities and Surveillance Cameras.Ó
North Korea reported that its director-general in charge of atomic energy wrote to the director-general of the International Atomic Energy Agency (IAEA) December 12-14, 2002, and demanded that seals on nuclear facilities be broken and surveillance cameras removed from the site.
The Reasons Given by North Korea for the Request
The United States completely scrapped the Agreed Framework byrenouncing unilaterally its obligations to provide heavy oil to North Korea.
We decided to lift the freeze on our nuclear facilities imposed on the condition that the United States will provide 500,000 tons of heavy oil a year under the North Korea-U.S. Agreed Framework. We will take steps to normalize operations of the facilities necessary to generate electricity.
This decision has been taken as a fair step to counter the United States's renunciation of the agreement made under the Agreed Framework in return for corresponding provisions binding North Korea.
Our decision to lift the nuclear freeze, beyond the purview of the IAEA, is a special measure intended to defend our independence and survival from the United States.
Therefore, we demand that the IAEA take steps at the earliest possible date to break seals on the nuclear facilities and surveillance cameras there. Unless the demand is met, we shall be taking necessary steps unilaterally.
The latest North Korean step is a follow-up to the December 12 declaration that it would lift nuclear freeze and restart nuclear facilities to generate electricity.
The step was intended to highlight the alleged U.S. responsibility in discarding of the Agreed Framework and lifting the nuclear freeze, and to indicate the lifting of the nuclear freeze as an issue that had nothing to do with the IAEA.
It is also a strong threat of action in case North Korea's demand is not met by the IAEA. In this connection, the IAEA sent a letter to North Korea on December 12, 2002, asking Pyongyang to adhere to the nuclear safeguards treaty and proposing an experts meeting to deal with the question.
North Korea's attitude appears to be an attempt to add pressure on the United States to resume dialogue, while justifying before the international community its decision to restart the nuclear installations under the pretext of electricity generation.
North Korea¡¡ Statement on Restarting Nuclear Facilities
A spokesman for North Korea's committee for the Peaceful Unification of the Fatherland issued the following statement on December 15, 2002 on the reopening of nuclear facilities for purposes of generating electric power. The statement was in connection with the North Korean foreign ministry¡¡ announcement (December 12, 2002) on a decision to lift a nuclear freeze and to immediately restart the operation of nuclear facilities and related construction.
Summary of the Statement
Our decision is a just action taken to make up for the loss of electricity, caused by the unilateral US discontinuance of the heavy oil supply mandated under the North Korea-U.S. Agreed Framework, and to accelerate economic development and stabilize the livelihood of the population.
Under the Geneva Agreed Framework we experienced a huge loss of electricity and a resultant economic damage. Our step was an unavoidable option forced on us by the United States under circumstances in which we could not continue to comply with the nuclear freeze obligations while our right to survival was being threatened.
Operation of nuclear facilities and resumption of construction for the production of electricity poses no danger whatever to South Korea.
Rather, the step would prove to be a boon to the South Koreans, if the power shortage problem in the North is resolved. As compatriots, there would be nothing to lose and everything to gain.
The responsibility for our move to lift the nuclear freeze to generate power is entirely on the United States.
The United States is trying to drive a wedge between South and North Korea in a bid to freeze evolving inter-Korean relations by countering down anti-American sentiment in the South and deliberately heightening tensions on the Korean peninsula, including the act of piracy aboard our freighter on the high seas following suspension of heavy oil deliveries to us.
The committee¡¡ December 15 statement was intended to placate the concerns of the international community about Pyongyang¡¡ decision to lift a nuclear freeze.
North Korea sought to justify the lifting of nuclear freeze in terms of survival, economic development and stability of the people¡¡ lives.
Playing on the anti-nuclear sentiment in the South, it also tried to press home the point that its step would not pose any threat to South Korea.
Another point was that North Korea ascribed to the United States the entire responsibility arising from the situation, while hurling various vituperations against Washington.
These arguments were meant to deflect criticism of the international community for its move and to soften the Bush administration¡¡ hard line policy by emphasizing Washington's responsibility for the latest development.
2 Mon
Richard Boucher, spokesman of the U.S. Department of State, in a regular briefing session, calls on North Korea to scrap its nuclear development program.
5 Thu
- Ambassador Dorian Prince of the Delegation of the European Commission to Korea plays host to a luncheon meeting with the press corps accredited to the Ministry of Foreign Affairs and Trade.
- Ambassador Prince states that the relationship with the European Commission can be expedited after North Korea takes tangible steps to dismantle its nuclear development program.
- He says, however, humanitarian support, such as food assistance to North Korea, and private-sector cultural exchanges will continue.
6 Fri
Henry J. Hyde, chairman of the U.S. House of Representatives International Relations Committee, and his four-member congressional party call off a visit to South Korea scheduled for December 7 due to anti-American demonstrations.
U.S. president George W. Bush discusses North Korea¡¡ nuclear development program in a phone call to his Russian counterpart Vladimir Putin.
Inter-Korean contact on the construction of the Gaeseong Industrial Complex, which started December 6 in Mt. Geumgang, ends on December 8. Both Koreas issue a joint press release that says they agreed to break ground for the work between December 26 and 30, 2002, to open an interim road between Gaeseong and Munsan prior to the ground-breaking ceremony, and to consent to an agreement on communications, customs clearance and quarantine covering the Gaeseong Industrial Complex.
11 Wed
- North Korea¡¡ freighter, the So San, under navigation in the Indian Ocean carrying some ten Scud missiles, is intercepted 965 kilometers off Northeast Africa by a Spanish naval vessel.
- Acknowledging that it ordered 15 Scud missiles from North Korea,Yemen lodges a protest against the United States and Spain for seizing a North Korean ship on the international waters.
Ari Fleischer, the White House spokes-man, announces release of the seized North Korean freighter in a press conference.
The first meeting of the working-level inter-Korean economic cooperation system is held in Seoul December 11-13.
12 Thu
North Korea¡¡ foreign ministry spokesman issues a statement on Pyongyang¡¡ decision to restart its nuclear facilities.
The National Security Council (South Korea) convenes an urgent meeting chaired by unification minister Jeong Se-hyun to discuss the North Korean announcement.
- Following the meeting, South Korea calls on North Korea to abide by all its obligations under the Geneva Agreed Framework, the Non-Proliferation Treaty, the Joint Declaration on the Denuclearization of the Korean Peninsula and the International Atomic Energy Agency (IAEA) Safeguards Agreement.
Ari Fleischer, the White House spokesman, gives a news conference on North Korea¡¡ decision to lift a nuclear freeze aboard Air Force One.
- Fleischer emphasizes in the news conference that North Korea has to discard its nuclear weapons program in a visible and verifiable manner.
13 Fri
¸òPresident Kim Dae-jung calls U.S. president George W. Bush for talks on North Korea¡¡ decision to lift a nuclear freeze.
- The two leaders share the view that their governments should cope with the situation calmly through the mutual assistance of South Korea, the United States and Japan and the cooperation of the international community.
Mohamed ElBaradei, director general of the IAEA, gives a news conference on North Korea¡¡ decision to lift its nuclear freeze.
- ElBaradei stresses that seals and surveillance devices must be maintained intact, advising North Korea not to eliminate or tamper with seals and surveillance cameras unilaterally.
15 Sun
The second contact of the South and North Korean Red Cross societies takes place in Mt. Geumgang December 15-17.
The third inter-Korean contact for the reconnection of trans-border rails and roads takes place in Mt. Geumgang December 15-17.
16 Mon
¸òSecretary of State Colin Powell and Deputy Defense Secretary Paul Wolfowitz of the United States, and foreign minister Yoriko Kawaguchi and defense minister Shigeru Ishiba of Japan issue a joint statement following the U.S.-Japan Two-Plus-Two Ministerial Meeting.
- They call on North Korea to abandon its nuclear weapons development program immediately and verifiably and to abide by all international accords.
22 Sun
The Korean Central News Agency announces Pyongyang¡¡ decision to break seals and remove surveillance cameras in its nuclear facilities.
ElBaradei, director general of the IAEA, commenting on North Korea¡¡ decision to dismantle surveillance tools on its nuclear facilities, voices concern that the Pyongyang move may act against non-proliferation of nuclear weapons since North Korea¡¡ spent fuel rods contain a considerable quantity of plutonium.
23 Mon
The chief delegates to the inter-Korean working-level military meeting discuss the issue of military guarantee for the traffic of interim roads involved in the link of two trans-border railways. The meeting held at Panmunjom¡¡ House of Peace at 2:00 P.M.
24 Tue
The second contact for inter-Korean maritime cooperation takes place in Pyongyang December 25-28.
27 Fri
Li Je-seon, director general of North Korea¡¡ atomic energy bureau, writes to ElBaradei, director general of the IAEA, informing him of Pyongyang¡¡ decision to expel IAEA inspection officials.
South Korea¡¡ foreign ministry spokesman issues
a statement following an urgent national security
council meeting convened to discuss North Korea¡¡
decision to expel IAEA inspection officials.
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