Pyongyang Report
News and views on DPRK - North Korea

Vol 1, No1 April 1999

In this issue-


US-DPRK AGREEMENT ON INSPECTION UNDERGROUND FACILITIES

The stand-off over the alleged 'underground nuclear facility' seems to have been resolved with both sides claiming victory. It appears that the Americans have been given access in exchange for increased food aid and agricultural support programmes, in particular involving potatoes, the DPRK's new priority crop.

US-DPRK JOINT STATEMENT
March 16, 1999
Delegations from the United States and the Democratic People's Republic of Korea met in New York from February 27 through March 15, 1999. The delegations led respectively by U.S. Special Envoy Charles Kartman and DPRK Vice Foreign Minister Kim Gye Gwan, continued discussions the two sides had held in Pyongyang, Washington, New York, and Geneva since November 1998.

The two sides reaffirmed their commitment to the Agreed Framework of October 21, 1994, in its entirety, as well as to the principles of their bilateral relations expressed in the U.S.-DPRK Joint Statement of June 11, 1993.

The U.S. and the DPRK, believing that successful cooperation to remove U.S. concerns about an underground site at Kumchang-ri will contribute to improved relations between the two countries, agreed as follows:


Sources:
People's Korea website;
United States Information Agency Washington File website [filename="99031603*EPF"]
How to locate files on the Washington File


DPRK STATEMENT

4th DPRK-U.S. underground facility negotiations

Pyongyang, March 18 (KCNA) --
....
As already known, ever since the adoption of the framework agreement between the two countries the DPRK has sincerely discharged its obligation of nuclear freezing under the agreement. We do not bother to conceal the fact that in the light of the acute military situation prevailing in our country which is technically at war with the U.S. we build all sensitive important objects underground in different parts of the country. The underground facility whose construction is now in progress in Kumchang-ri is one of them. It is a non-nuclear facility from A to Z.

... the DPRK side decided to permit an on-site visit to the object under construction in Kumchang-ri by a U.S. delegation, which is not in response to its demand for "inspection," but at the invitation of the DPRK. There was a sufficient debate on and agreement on the payment of the "inspection fee." The U.S., though belatedly, admitted that its behaviour was wrong and decided to adopt politico-economic measures as demanded by the DPRK. For the U.S. it is a good thing.

The DPRK made it clear that it will take a determined countermeasure if the U.S. raises "suspicion" of any other object. What has been agreed upon at the recent negotiations still remains on a sheet of paper. Whether it is put into practice or not depends entirely upon whether the U.S. side keeps its promise or not.
Source: Korea Central News Agency (KCNA) website


US SECRETARY OF STATE ALBRIGHT

"The agreement we've reached addresses all of our concerns, and it will enable us both to confirm and monitor the current and future use of the suspect site," Albright said in a March 16 statement released by the Department of State.

Albright said that, according to the agreement:

* The North Koreans have agreed to multiple site visits by a U.S. team to the underground site at Kumchang-ni.
* The first visit will be in May 1999, with follow-up visits continuing as long as our concerns about the site remain.
* During each visit, the U.S. team will have access to the entire site.

Albright noted that the United States did not agree to North Korean demands for "compensation" in return for access.

Source: United States Information Agency via United States Information Agency Washington File website [file="99031604*EPF"] How to locate files on the Washington File


KARTMAN/KIM JOINT PRESS CONFERENCE

17 March 1999


New York -- U.S. efforts to improve political and economic relations with North Korea will likely begin with a joint bilateral program in the agricultural area, given that the food situation in the DPRK remains quite dire, according to U.S. Special Envoy Charles Kartman.

The United States and North Korea have begun discussing the details of a pilot program involving potato production, Kartman said during a joint press conference with his North Korean counterpart March 16.

Those discussions, he said, "will continue in the coming days and we hope that it will be implemented very quickly." (A transcript of the briefing is on website)

Source: United States Information Agency via United States Information Agency Washington File website [file ="990317*EPF"]


A VIEW FROM SOUTH KOREA

03-18-99 : North Korea settlement eases tension, heralds another series of negotiations
By Jun Kwan-woo Staff reporter

The escalating tension over a suspect North Korean nuclear site has dissipated as Pyongyang agreed to allow the United States multiple access to the facility in return for additional food aid.

It may be too early to heave a sigh of relief, however, for the just-ended talks should be followed by successive working-group negotiations to ensure flawless implementation of the agreement, diplomatic watchers here said.

Seoul yesterday welcomed the successful conclusion of the U.S.-North Korea nuclear talks. But it warned Pyongyang not to let similar nuclear problems happen again.

"We feel happy to see the fourth round of nuclear talks end up a 'smooth' settlement," the Foreign Affairs and Trade Ministry said in a statement.

Thanks to the breakthrough in the New York talks, the Geneva Agreement Framework of 1994 is expected to get back on the right track, ministry officials said.
...

While the joint statement merely said that the United States has decided to "take a step" to improve political and economic relations between the two countries, the sources said that the "step" will include an estimated 500,000 tons of additional food aid to be offered through the World Food Program to the North. "Also in return, the United States will support North Korea's efforts to increase its potato yields through non-governmental organizations," the official said.

The United States in this regard is reportedly considering offering 1,000 tons of potato seeds and 100,000 tons of special food aid for those working at potato farms, he said.

...

Not a few analysts here also raised the question: In spite of the breakthrough in the U.S.-North Korean nuclear talks, what if the North has a second or the third Kumchang-ni site? "After all, we have to make a comprehensive approach, as suggested by President Kim, to solve North Korea's nuclear and missile issues," a Seoul official said.

He noted that President Kim proposes a "package deal," under which the North should be given great economic and political favors for abandoning its weapons of mass destruction programs.
Source: Korea Herald


US GIVES MORE AID

Press Statement by James B. Foley, Deputy Spokesman March 22, 1999
North Korea--World Food Program Appeal

In response to the UN World Food Program's (WFP) December 1998 appeal for humanitarian food aid for the Democratic People's Republic of Korea (D.P.R.K.), the U.S. Government has decided to provide additional humanitarian assistance in the amount of 100,000 metric tons of food aid to help fill the remaining 209,000 ton shortfall in donations.

Chronic food production shortfalls have resulted in widespread starvation and malnutrition in the D.P.R.K. Based on its recent nutritional survey and crop assessments, the UN has concluded that the food situation remains dire.

This U.S. Government assistance, sourced from PL 480 Title II Emergency Food Aid and 416 (b) surplus agricultural commodities, will be provided to the WFP for distribution to the D.P.R.K. Commodities for this contribution will include corn-soy blend and corn.

As in the past, U.S. assistance will be targeted at North Korean civilians who are most vulnerable to the effects of malnutrition caused by the food crisis, including children in nurseries, schools, and orphanages, pregnant/nursing women, handicapped people, and hospital patients.

To monitor the contributions in order to assure that they are used for their intended purpose, the WFP continues to maintain a staff of 46 food monitors in six offices throughout North Korea. The U.S. will continue working with the WFP and U.S. private voluntary organizations (PVOs) to further enhance the effectiveness of food aid distribution in the D.P.R.K.
Source: United States Information Agency Washington File website [file="99032202*EPF"]
How to locate files on the Washington File


COMMENTARY FROM PEOPLE'S KOREA

Pyongyang Allows Washington On-site Visit to Kumchang-ri

Pyongyang and Washington struck a breakthrough agreement on a north Korea's underground site issue, putting an end to U.S. "suspicions" over the north's alleged nuclear development at the site, while opening up a new way for an eventual political and economic normalization between the two countries.
After the marathon talks which lasted half a month in New York, the two countries announced on Mar. 16 that successful cooperation during the latest talks will contribute to improved relations between the two countries.

Initially, the DPRK will grant the U.S. a visit to the underground site located in Kumchang-ri, in exchange Washington will take a step to improve politic-economic relations with Pyongyang, which would involve the possible lifting of outdated U.S. economic sanctions against the DPRK. The Clinton Administration agreed to a joint pilot project intended to improve potato production in the DPRK.
Source: People's Korea, March 27, 1999 p.1
Note this article has not appeared on the People's Korea website

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OTHER NEWS AND REPORTS



PYONGYANG STEPS UP STUDIES OF MARKET ECONOMY

The Democratic People's Republic of Korea is now promoting studies of market economy, while revitalising its domestic industry.

According to a Nihon Keizai Shimbun report on Jan. 5 from Seoul, the DPRK sent some 100 economic experts abroad on a business study program in 1998, about 10 times as many as the number in 1997.

They were dispatched to Singapore, Thailand, Hungary and elsewhere to participate in training programs organised by the International Monetary Fund (IMF), the United Nations Development Program (UNDP) and other organisations.

It is also planning to send them to Shanghai or Hong Kong to participate in more training programs, such as macroeconomic courses, courses in international financial markets and statistics compilation from March, the Japanese major economic daily quoted south Korean authorities and UNDP's Seoul office as saying. Pyongyang shows a great interest in computerisation of accounting and other office works, the paper said. It is reported that the DPRK is requesting membership in and aid from international organisations, such as IMF, the World Bank and the Asian Development Bank (ADB) and is unofficially keeping contacts with the organisations concerning these matters.

On Dec. 7 last year, economic officials and experts from north and south Korea and the International Bank for Reconstruction and Development (IBRD) held a seminar on the activation of the DPRK's economy in Washington.

In the seminar, which was sponsored by the IBRD, one of the World Bank groups, they discussed Pyongyang's membership in IMF and IBRD. The IBRD reportedly plans to select thirty or forty DPRK officials and instruct them on how to compile various economic indices and statistics.

As for Pyongyang's bid for membership in the IMF, Seoul has expressed its intention to support it if Pyongyang makes a formal request, the Nihon Keizai Shimbun added.
Source:
People's Korea website,

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WFP/FAO REPORT ON FOOD SITUATION EXPRESSES CAUTIOUS OPTIMISM


The full text of this important report is available on the web at the FAO's Global Information and Early Warning System on food and agriculture
GIEWS Alert


Pyongyang Report is compiled by Tim Beal and Don Borrie as a contribution towards greater knowledge and understanding of North Korea. Information is culled from a variety of sources and does not present any specific ideological perspective. It is planned to issue it every two months by hardcopy, email and on the web.
Further information may be obtained from the editors
Dr Tim Beal
19 Devon Street, Kelburn Wellington, NZ
Tel: +64 4 463 5080 (day)
+64 4 934 5133 (evening)
Fax: +64 4 934 5134
Email: Tim.Beal@vuw.ac.nz or Tim.Beal@apri.ac.nz
Rev Don Borrie
7 Thornley St
Titahi Bay
Porirua,
NZ
Tel/fax: +64 4 236 6422


Tim Beal maintains a webpage on DPRK-North Korea


Other sources used include:

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Pyongyang Report Vol 1, No. 1 April 1999
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