O P 060431Z SEP 08
FM SECSTATE WASHDC
TO AMEMBASSY SEOUL IMMEDIATE
INFO AMEMBASSY BEIJING PRIORITY
AMEMBASSY TOKYO PRIORITY
USEU BRUSSELS PRIORITY
HOMELAND SECURITY CENTER WASHINGTON DC PRIORITY
SECDEF WASHINGTON DC PRIORITY
HQ USPACOM HONOLULU HI PRIORITY

C O N F I D E N T I A L STATE 095622 
 
 
NOFORN 
 
E.O. 12958: DECL: 09/03/2018 
TAGS: OVIP NEGROPONTE JOHN MARR PARM PREL KS
 
SUBJECT: U.S.-ROK Strategic Consultations for Applied 
Partnership Meeting 
 
Classified by EAP Assistant Secretary Christopher Hill 
for reasons 1.4 (b) and (d). 
 
¶1. (SBU) September 2, 2008, from 11:15 am to 12:15 pm, 
Washington, DC. 
 
¶2. (SBU) Participants: 
 
U.S. 
Deputy Secretary Negroponte 
David Gordon, Director, Policy Planning 
A/S Mark Kimmitt, PM 
DASD David Sedney, DOD-OSD 
DAS Alex Arvizu, EAP 
Sung Kim, EAP 
Kurt Tong, EAP/K 
Kaye Lee, D Staff 
Brian McFeeters, Embassy Seoul (notetaker) 
Sherri Holliday-Sklar, EAP/K (notetaker) 
 
Republic of Korea 
Vice Foreign Minister Kwon Jung-Rak 
Political Minister Kim Kyou-hyun, ROK Embassy 
National Security Strategy Secretary Kim Tae-Hyo, Blue 
House 
Deputy Director-General Lee Back-soon, MOFAT North 
American Affairs Bureau 
Kim Hyoung-zhin, ROK Embassy 
Cho Koo-Rae, MOFAT Director for North America Division II 
Lee In-Bae, Assistant to the President 
Rhee Dong-Yeol, MOFAT North American Division I 
Cho Seoung-Ho, MOFAT North American Division I 
Kim Young-wan, MOFAT Deputy Director North American 
Division III 
 
¶3. (C/NF) SUMMARY:  The three bilateral Presidential 
meetings this year in the United States, Korea, and Japan, 
have energized the strong U.S.-Republic of Korea (ROK) 
alliance, ROK Vice Foreign Minister (VFM) Kwon told Deputy 
Secretary Negroponte during September 2 Strategic 
Consultations for Allied Partnership (SCAP) discussions 
in Washington, D.C.  VFM Kwon reaffirmed Korea's commitment 
to securing National Assembly approval for the Korea-U.S. 
Free Trade Agreement (KORUS FTA) this year and emphasized 
the political importance of securing entry to the Visa Waiver 
Program (VWP) by the end of the year.  Concerning military 
alliance issues, Kwon asked the United States to remain open 
to reviewing the 2012 OPCON transfer should circumstances 
warrant; expressed a desire to increase Korea's in- kind 
contributions to meet burdensharing requirements; requested 
help with unsatisfactory draft legislation revising the 
ROK's foreign military sales (FMS) status; and emphasized 
the political sensitivity of the environmental concerns 
surrounding the return of U.S. military bases. 
END SUMMARY. 
 
Korea-U.S. Free Trade Agreement 
------------------------------- 
 
¶4. (SBU) The three bilateral Presidential meetings this year 
held in the United States, Japan, and Korea have energized 
the strong U.S.-ROK alliance, according to ROK VFM Kwon. 
VFM Kwon said the ROKG is working hard to get National 
Assembly approval of the KORUS FTA during the regular fall 
session (from mid-September through December 20).  He said 
the ruling Grand National Party has committed to using its 
majority to ensure timely passage of the FTA.  The Deputy 
Secretary said President Bush is committed to ratification 
and implementation of the KORUS FTA.  He observed that early 
National Assembly passage of the KORUS FTA would help the 
Administration with Congress, which currently has plans to be 
in session only until September 26 this year.  Nonetheless, 
the Administration will make its best efforts.  We are aware 
that the agreement is in our best interests.  VFM Kwon said the 
ROKG understands the challenge of securing Congressional 
ratification.  He noted that the ROK is in the end stages of 
FTA negotiations with the European Union and hopes to sign a 
Korea-EU FTA in October.  Korea would like to have the KORUS 
FTA in place as soon as possible to expand our already strong 
relationship. 
 
Visa Waiver Program (VWP) 
------------------------- 
 
¶5. (C/NF) Securing ROK entry to the VWP this year is a key 
priority for the ROKG, VFM Kwon said.  The ROKG is working 
to conclude a Memorandum of Understanding (MOU) with the 
United States to resolve the remaining issue of criminal 
information sharing.  The ROK Director General (DG) for 
Consular Affairs arrives today (September 2) to meet with 
his U.S. Department of Homeland Security counterpart to 
discuss the MOU.  At issue is Korea's ability to provide 
the criminal records of travelers to the United States 
without travelers' consent.  The MOU would allow for such 
sharing, but will have to be confirmed by the National 
Assembly.  VFM Kwon said that National Assembly ratification 
could take some time, and may not happen before the end of 
the year.  However, President Lee had already promised the 
Korean people that they would deliver the VWP by the end of 
the year.  As a result, VFM Kwon hopes we can proceed with 
the VWP with a signed but not yet fully ratified MOU. 
 
¶6. (C/NF) The Deputy Secretary noted the importance of 
concluding the MOU negotiations soon and asked whether the 
ROKG would be able to implement the criminal information-sharing 
provisions without having National Assembly endorsement of 
the MOU.  Kwon responded that it was his understanding the ROKG 
could proceed on administrative authorities to carry out its 
end of the MOU until the National Assembly acts.  In any event, 
the ROKG has told the Korean public the VWP will happen this 
year so the ROKG must find a way to make it work, Kwon said. 
He thought the ROKG would be able to share criminal information, 
but not on a blanket basis.  The Deputy Secretary emphasized 
that the important next step to achieving our goal of 
implementing the VWP is to ensure a satisfactory conclusion 
of the MOU negotiations. 
 
Work, English, Study, Travel (WEST) Program 
------------------------------------------- 
 
¶7. (SBU) VFM Kwon said young Koreans have high expectations 
for the new WEST program.  EAP DAS Arvizu said the USG and 
ROKG negotiations are on track to deliver a signed MOU this 
fall and start the program early next year. Kwon said the ROKG 
is concerned about identifying companies that would provide 
work opportunities for Korean students.  He asked for advice 
about facilitating the work portion of the program.  The Deputy 
Secretary suggested there were a number of organizations that 
had experience facilitating these types of programs.  The 
Institute for International Education (IIE), which has helped 
Fulbright exchanges find work, and Meridian House are just two 
examples. 
 
OPCON Transfer 
-------------- 
 
¶8. (C/NF) VFM Kwon stressed that the planned transition of 
operational control (OPCON) from U.S. to ROK military forces 
by 2012 is going well.  Because of the unpredictable security 
situation on the peninsula, the United States and ROKG should 
regularly consult on how the peninsular security climate could 
affect the OPCON transition.  Deputy Assistant Secretary for 
Defense David Sedney noted that we are always open to 
consultations but observed that both sides had agreed to the 
OPCON transition date with an awareness of the DPRK's possession 
of nuclear weapons, of missiles and recognizing the DPRK's 
unpredictability.  We chose the 2012 date with the conviction 
that the OPCON transition would improve security on the Korean 
peninsula, he stated.  The Deputy Secretary cautioned that 
active consideration of changing the date could send the wrong 
message.  In response to a question, VFM Kwon noted that the 
United States and ROK had agreed to review OPCON transition 
timing in the last couple of years of transition.  VFM 
Kwon said the ROKG is proceeding with the OPCON transition plan 
but wants to flag concern that recent DPRK actions, including 
their continued development of long-range ballistic missiles, 
cause lingering uneasiness on the ROK side. 
 
Burdensharing Negotiations 
-------------------------- 
 
¶9. (C/NF) Negotiations for a new Special Measures Agreement 
(SMA) will continue in late September, Kwon noted.  The ROKG has 
proposed less "cash" and more "in-kind" support and the U.S. side 
has agreed to consider it "in due course," particularly for 
military construction.  Kwon noted that SMA currently is used for 
three kinds of expenditures:  (1) wages for ROK citizens working 
for USFK; (2) logistical support (which is done by contract); and 
(3) military construction.  Cash transfers for military 
construction, he argued, have been non-transparent and problematic 
because of the long time-frame involved and the short Korean 
budgetary year.  These problems have eroded the level of ROK public 
support for SMA.  The two sides now agree on the basic concept 
of moving toward more in-kind contributions, but the timing is 
very important.  If we can narrow the gap on the timing of the 
transition from cash to in-kind support, Kwon noted, the ROKG would 
have more flexibility in terms of its overall level of financial 
support for the SMA.  Political Military Affairs Assistant 
Secretary Kimmitt said, based on his discussion with U.S. 
negotiator Ambassador McDonald, this issue should not be an 
insurmountable problem. 
 
Base Returns 
------------ 
 
¶10. (C/NF) VFM Kwon stressed the ROKG is concerned about some 
environmental problems at U.S. military bases that are being 
returned to the ROK.  The ROKG would like to agree on the 
standards for joint environmental assessment of the bases, 
including an agreed definition of "non-imminent substantial 
endangerment" to the environment.  Local governments and 
neighboring residents are concerned that the bases will not 
be able to be redeveloped without significant environmental 
remediation after the U.S. military returns them.  The Deputy 
Secretary said he understands ROKG environmental concerns but 
noted that environmental remediation cannot be an unlimited 
liability for the U.S. military.  These bases were created in 
the context of U.S. military forces coming to the defense of 
the ROK about 50 years ago, with what we knew about environmental 
impact at that time.  DASD Sedney said the USFK plans to 
return nine bases to the ROKG this year, including Camp Hialeah. 
USFK and the ROK Ministry of National Defense negotiators 
are close to agreement on the terms of those camp returns 
within the framework of the Status of Forces Agreement 
(SOFA), he said. 
 
Foreign Military Sales (FMS) Status 
----------------------------------- 
 
¶11. (C/NF) As discussed during President Lee's April 2008 
visit, the ROKG would like to obtain Foreign Military 
Sales (FMS) status similar to NATO plus 3, VFM Kwon said. 
The U.S. House of Representatives passed a bill earlier 
this year that would accomplish this.  The Senate Foreign 
Relations Committee (SFRC) has changed the bill to provide 
FMS treatment that is worse than what Korea currently 
has, Kwon asserted.  In his assessment, the language is 
even worse than the FMS status of former Warsaw-pact 
countries in Eastern Europe.  The Deputy Secretary 
observed that Secretary Rice had expressed her support 
for elevating the ROK's FMS status in a letter to Senators 
Biden and Lugar last April.  EAP DAS Arvizu said the State 
Department would look into the issue. 
 
¶12. (SBU) The subsequent SCAP working lunch discussion will 
be reported septel. 
RICE 
 
 
NNNN 
 



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