VZCZCXRO5592
OO RUEHGH
DE RUEHUL #1066/01 1880522
ZNR UUUUU ZZH
O 070522Z JUL 09
FM AMEMBASSY SEOUL
TO RUEHC/SECSTATE WASHDC IMMEDIATE 4929
RUCPDOC/USDOC WASHDC 8819
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEAIIA/CIA WASHINGTON DC//DDI/OEA//
RHHMUNA/USCINCPAC HONOLULU HI//FPA//
RUEKJCS/SECDEF WASHINGTON DC
RUEKJCS/JOINT STAFF WASHINGTON DC
RUEKDIA/DIA WASHINGTON DC//DB-Z//
RUEHMO/AMEMBASSY MOSCOW 9976
RUEHBJ/AMEMBASSY BEIJING 6231
RUEHKO/AMEMBASSY TOKYO 6319
RUEHGH/AMCONSUL SHANGHAI 0958
RUEHSH/AMCONSUL SHENYANG 4680
RUEHIN/AIT TAIPEI 3654
RUEHGP/AMEMBASSY SINGAPORE 6851
RUCNDT/USMISSION USUN NEW YORK 1213
RUEHGV/USMISSION GENEVA 2538
RUEHLO/AMEMBASSY LONDON 1612
RUEHFR/AMEMBASSY PARIS 2221

UNCLAS SECTION 01 OF 06 SEOUL 001066 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL PGOV MARR ECON KPAO KS US
SUBJECT: SEOUL - PRESS BULLETIN; July 7, 2009 
 
TOP HEADLINES 
------------- 
 
Chosun Ilbo, Hankook Ilbo, All TVs 
Bloody "Silk Road" 
140 Killed and 828 Others Injured 
in Uighurs' Rioting in Western China 
 
JoongAng Ilbo 
President Lee Donates 33.1 Billion Won to Society 
 
Dong-a Ilbo, Segye Ilbo, Seoul Shinmun 
ROK Drops Four Places to 15th in Global GDP Ranking 
 
Hankyoreh Shinmun 
ROKG Urged to First Provide Subsidies to Upgrade 
Non-regular Workers' Status to Regular Workers 
 
 
DOMESTIC DEVELOPMENTS 
--------------------- 
 
Foreign Affairs and Trade Minister Yu Myung-hwan told the National 
Assembly yesterday that the ROKG plans to form an inter-ministry 
task force to prepare for talks with the U.S. regarding revising the 
ROK-U.S. Atomic Energy Agreement. Minister Yu went on to say that 
his ministry will seek to begin the talks possibly later this year 
and that the agenda will include pyro-processing of spent nuclear 
materials. (Chosun, JoongAng, Dong-a, Hankyoreh, Segye, MBC) 
 
According to military sources, the U.S. has expressed its position 
that it can officially discuss revising its missile treaty with the 
ROK through various channels, such as the annual Security 
Consultative Meeting (SCM), in order to raise the permissible range 
of ROK ballistic missiles. (Dong-a) 
 
 
INTERNATIONAL NEWS 
------------------ 
 
Chief nuclear negotiators from the ROK and Japan, in a July 6 
meeting in Seoul, agreed to faithfully implement sanctions under UN 
Security Council resolutions against North Korea, while at the same 
time pursuing talks with the North. (JoongAng) 
 
The North Korean cargo ship, Kang Nam, which has been suspected of 
carrying banned weapons materials, returned to North Korean 
territorial waters yesterday after being trailed for three weeks by 
a U.S. Navy destroyer. (Chosun, JoongAng, Segye) 
 
The UN Security Council will hold a plenary session today at Japan's 
request, to discuss the North's July 4 launch of seven missiles into 
the East Sea (Sea of Japan). (Chosun, Hankook, Hankyoreh, Segye, 
Seoul, KBS) 
 
 
MEDIA ANALYSIS 
-------------- 
 
-N. Korea 
--------- 
 
Most ROK media carried inside-page reports that the North Korean 
cargo ship, Kang Nam, which has been suspected of carrying banned 
weapons materials, returned to North Korean territorial waters 
yesterday after three weeks of being trailed by an American Navy 
destroyer. 
 
Conservative Chosun Ilbo, in an article entitled "Humiliation of the 
Kang Nam," noted that this incident has shown the Obama 
Administration's strong resolve to not make any concessions in 
implementing UN Security Council resolutions against North Korea. 
 
SEOUL 00001066  002 OF 006 
 
 
The article went on to say that a major achievement in this episode 
was persuading the Burmese junta, which has resumed friendly 
relations with North Korea, not to permit the Kang Nam to stop 
there. 
 
In a commentary, right-of-center JoongAng Ilbo observed: "The Obama 
Administration seems to think it needs to push North Korea to the 
limit to bring it back to dialogue. ... Toward this end, the United 
States must carry out independent measures aimed at squeezing North 
Korea, such as financial sanctions and blocking the North's weapons 
exports.  At the same time, China has to be encouraged to implement 
UN Security Council Resolution 1874. ... The United States thinks it 
is now China's turn to respond.  China will probably do so at the 
U.S.-China Strategic and Economic Dialogue scheduled for late July. 
Whether or not the Obama Administration's stern response to North 
Korea will continue depends on what type of presents China will 
bring to the party." 
 
Right-of-center JoongAng Ilbo also gave play to a July 6 meeting in 
Seoul between chief nuclear negotiators from the ROK and Japan, in 
which the two officials agreed to faithfully implement sanctions 
under UN Security Council resolutions against North Korea, while at 
the same time pursuing talks with the communist state. 
 
Pres. Obama's Visit to Russia 
Citing the foreign media, the ROK media reported on a July 6 
U.S.-Russia agreement in Moscow to reduce the number of nuclear 
warheads in Russian and U.S. strategic arsenals to between 1,500 and 
1,675 within seven years and the number of ballistic missile 
carriers to between 500-1,100. 
 
Right-of-center JoongAng Ilbo wrote in the headline: "U.S.-Russia 
Relations 'Reset'... New Chapter Opens for Reconciliation; Obama, 
Medvedev Agree on a New Nuclear Arms Reduction Pact to Replace the 
1991 Strategic Arms Reduction Treaty (START)"  Conservative Dong-a 
Ilbo, meanwhile, headlined its article; "U.S.-Russia Nuclear Arms 
Reduction Agreement Likely to Lead to Pressure on France, India and 
China to Do the Same" 
 
-Uighur Riots in Xinjiang 
------------------------- 
The ROK media gave straight, front-and inside-page play to the July 
5 bloody clashes in China's volatile western Xinjiang region between 
Muslim Uighurs and Han Chinese, in which at least 140 people were 
killed and 828 others injured.   The casualty toll, if confirmed, 
would make this the single worst episode of violence in China in 
many years and one of the deadliest ethnic clashes in years, 
according to media reports. 
 
Newspapers carried the following headlines: "Bloody 'Silk Road'... 
Uighur Protesters Shout for Independence; Discrimination, Huge Gap 
between Rich and Poor... Uighurs Explode with Anger" (conservative 
Chosun Ilbo); "China Wary that Xinjiang Uighur Autonomous Region 
Might Become a 'Second Tibet'" (conservative Dong-a Ilbo, moderate 
Hankook Ilbo) 
 
 
OPINIONS/EDITORIALS 
------------------- 
 
FIRST STEP FOR "PEACEFUL NUCLEAR SOVEREIGNTY" IS BUILDING TRUST 
(Dong-a Ilbo, July 7, 2009, Page 39) 
 
By Kim Tae-woo, researcher at the Korea Institute for Defense 
Analyses 
 
With North Korea's nuclear threat intensifying, some people in the 
ROK are calling out for nuclear armament.  Foreign Affairs and Trade 
Minister Yu Myung-hwan's July 2 statement, "The Seoul-Washington 
nuclear cooperation agreement should be revised so that a complete 
nuclear fuel cycle will be recognized" is now causing a stir. 
However, despite its sensitive timing, Yu's remark is not related to 
discussion of nuclear armament. 
 
 
SEOUL 00001066  003 OF 006 
 
 
The ROK declared abandonment of (nuclear) enrichment and 
reprocessing activities 18 years ago. 
 
Military nuclear sovereignty, which refers to the right to have 
nuclear weapons, is based on the logic that as the North threatens 
us with its nuclear weapons, we should also respond with our nuclear 
weapons.  On the other hand, peaceful nuclear sovereignty means the 
right to be free to use atomic energy peacefully, without including 
nuclear weapons.  Nevertheless, in the past, discussions about the 
ROK's nuclear sovereignty were fraught with confusion between 
peaceful nuclear sovereignty and military nuclear sovereignty. 
 
It is natural that a member of the Nuclear Non-Proliferation Treaty 
(NPT) should give up its nuclear weapons, but in the case of the 
ROK, abandonment of nuclear enrichment and reprocessing activities 
came not only under the NPT but also under the Joint Declaration on 
the Denuclearization of the Korean Peninsula that was issued by 
then-President Roh Tae-woo in 1991.  Although enrichment is key to 
producing nuclear fuel, and reprocessing is essential to recycling 
spent fuel rods and disposing of them in an environment-friendly 
way, both steps are subject to inspection because they are both 
steps involved in the manufacturing of nuclear weapons.  For the 
ROK, which is heavily reliant on nuclear energy, it is natural to 
have facilities for these activities with inspections, but the Roh 
Tae-woo Administration proclaimed that the ROK would abandon nuclear 
enrichment and reprocessing activities, saying that it would help 
persuade the North to stop pursuing its nuclear development.  At 
that time, I argued, "If we give up enrichment and reprocessing 
activities, we will regret it in coming years," but few listened to 
me. 
 
After a long time, nuclear sovereignty is now being discussed again. 
 In short, however, military nuclear sovereignty, which is illegal 
under the NPT, is not an option for the ROK to choose.  Still, 
considering that the ROK depends on nuclear energy for 40 percent of 
its electric power production, it is urgent to secure peaceful 
nuclear sovereignty, but before that, there are several aspects to 
think about. 
 
First, (the ROK) should have in-depth consultations with the U.S. 
based on trust.  (These consultations) are needed to placate the 
U.S. as an ally since there are a plethora of important pending 
issues (with the U.S.) such as the establishment of a strategic 
alliance, the extension of nuclear umbrella and the transfer of 
wartime operational control.  Also, (the consultations are needed) 
from the realistic perspective that the U.S. is the country which is 
leading the initiative against the proliferation of weapons of mass 
destruction.  In the 1980s, Japan obtained recognition of all 
nuclear activities including plutonium production under a 
"comprehensive agreement."  This was made possible due to (the 
influence of) then-leader Nakasone Yasuhiro, who had a vision of 
(Japan's) future based on the deep trust between the U.S. (and 
Japan.)  Second, since a country like North Korea pushes for 
nuclearization in defiance of (the international) agreement, 
advanced countries including the U.S. are making efforts to outlaw 
the spread of (nuclear) enrichment and reprocessing.  Therefore, the 
ROK should make its way through this international nuclear politics. 
 This is the price the ROK should pay because it "fastened the first 
button incorrectly." 
 
An argument for "military nuclear sovereignty" has a chilling 
effect. 
 
It is urgent that we obtain a guarantee for legal nuclear activities 
but, at present, the ROK should take a cautious approach.  The ROK 
should consider how the U.S. viewed previous (ROK) governments that 
reacted emotionally without considering complicated international 
politics, and should confirm whether mutual trust between the ROK 
and the U.S. has been sufficiently restored.  The ROK should also 
consider its own capabilities (regarding nuclear sovereignty.)  If 
we think that "scientists, not politicians" should argue for nuclear 
sovereignty, this attitude does not give due respect to the other 
party (the U.S.)  If so, we are not yet ready to seek a right to 
peaceful nuclear sovereignty.  Things will become worse if the media 
 
SEOUL 00001066  004 OF 006 
 
 
encourages (the ROK) to have military nuclear sovereignty that 
covers both legal and illegal activities.  Achieving peaceful 
nuclear sovereignty is a process of securing recognition of legal 
activities through our leverage and international trust. 
 
 
THE BIG SQUEEZE 
(JoongAng Ilbo, July 6, 2009, Page 41) 
 
By Kim Sung-han, a professor of international relations at Korea 
University Graduate School of International Studies 
 
The U.S. must carry out independent measures for squeezing North 
Korea, such as financial sanctions and blocking weapons exports. 
 
Shortly after North Korea launched a long-range missile on April 5, 
a closed-door seminar was held in Washington and a high-ranking 
official in the Barack Obama Administration delivered a speech 
before dinner. 
 
He said that when Special Representative for North Korea Policy 
Stephen Bosworth visited China he delivered a message that, if North 
Korea did not launch a missile, he intended to visit Pyongyang, and 
Washington would have direct dialogue with the North Korean 
government in the future. 
 
The official lamented that North Korea went ahead with the missile 
launch in spite of Bosworth's message, using the metaphor that 
Washington held out its hand to shake, but instead, North Korea 
slapped it on the face. 
 
After the official's speech, another person at the seminar asked him 
whether he intended to negotiate for the release of the two women 
journalists detained in North Korea.  The official said he didn't 
feel comfortable talking about the journalists. 
 
About a month later, on May 25, North Korea conducted its second 
nuclear test.  The United Nations Security Council convened and 
passed Resolution 1874, one of the sternest (measures) the UN has 
adopted since the Korean War (1950-1953). 
 
In addition, the United States has been monitoring the North Korean 
cargo ship Kang Nam, which is suspected of carrying objects banned 
under Resolution 1874.  It also stopped an additional supply of food 
aid, saying that transparency in the distribution of food was not 
guaranteed. 
 
North Korea refused to take U.S. food aid in March. 
 
It is also known that the United States has frozen or closed bank 
accounts in many places, including Malaysia, that appear to belong 
to North Korea. 
 
The Obama Administration can take such strict measures because it 
did not have the same bitter experience as its predecessor. 
 
The George W. Bush Administration underwent a painful experience in 
November 2006 when the ruling party was defeated in the midterm 
election, shortly after North Korea's nuclear test in October of 
that year.  The Bush Administration regarded the defeat as voters' 
stern judgment of its Iraq and North Korea policy. 
 
After that, the Bush Administration thought there was still a chance 
that some kind of deal with the North Koreans could be made.  It 
tried to patch up the nuclear issue based on the vague concept of 
"disabling" the North's nuclear facilities in an attempt to make 
some headway in foreign affairs. 
 
The Obama Administration, which has more than three years left in 
its term, believes its predecessor's approach sent the wrong message 
to North Korea: that sanctions would never lead to real action and 
the United States would surely come to the negotiation table in the 
end. 
 
 
SEOUL 00001066  005 OF 006 
 
 
Since he was a presidential candidate, President Obama has 
maintained the necessity for direct diplomacy to resolve the North 
Korea issue.  He thought it was better to meet face-to-face with 
leaders of so-called rogue states and resolve complicated pending 
issues rather than regard seeing them as taboo. 
 
But as North Korea has continued its provocations, the Obama 
Administration seems to think it needs to push North Korea to the 
limit to bring it back to dialogue. 
 
What we need to remember, though, is that in North Korea, the 
security of the regime is more important than national security. 
So, according to Washington's reasoning, North Korea will come to 
the negotiation table only when Kim Jong-il himself feels that the 
security of his regime could be at risk. 
 
Toward this end, the United States must carry out independent 
measures aimed at squeezing North Korea, such as financial sanctions 
and blocking North Korea's weapons exports.  At the same time, China 
has to be encouraged to implement UN Security Council Resolution 
¶1874. 
 
The United States reconfirmed its promise to offer the nuclear 
umbrella to South Korea and Japan, thereby lifting China's worries 
over the possible nuclear armament of its two neighbors. 
 
The United States thinks it is now China's turn to respond.  China 
will probably do so at the U.S.-China Strategic and Economic 
Dialogue scheduled for late July.  Whether or not the Obama 
Administration's stern response to North Korea will continue depends 
on what type of presents China will bring to the party. 
 
(This is a translation provided by the newspaper, and it is 
identical to the Korean version.) 
 
 
FEATURES 
-------- 
 
U.S. COULD DISCUSS RAISING SEOUL`S MISSILE RANGE 
(Dong-a Ilbo, July 7, 2009, Front Page) 
 
By Reporter Yoon Sang-ho 
 
At the annual Security Consultative Meeting, the U.S. military could 
officially bring up the topic of revising the bilateral missile 
guideline to increase the permissible range of South Korean 
ballistic missiles.  This comes amid the growing demand for missile 
sovereignty by South Korean politicians in the aftermath of North 
Korea's long-range missile launches. 
 
In a meeting with advisers to National Defense Committee members 
from both the ruling and opposition parties Thursday, a top U.S. 
military official reportedly told a briefing, "The revision of the 
bilateral missile guideline can be discussed through various 
channels such as the Security Consultative Meeting and the Military 
Committee Meeting." 
 
The two meetings are regular consultative bodies between the defense 
ministers and chairmen of the Joint Chiefs of Staff of both nations. 
 A source said, "If South Korea suggests a revision of the 
guideline, the issue can be sufficiently discussed through 
consultation between military authorities or further bilateral 
talks." 
 
The 90-minute briefing was held Thursday at the (South) Korea-U.S. 
Combined Forces Command in Seoul's Yongsan district with 20 advisers 
invited by U.S. Forces Korea Commander Gen. Walter Sharp. The 
briefing covered the transfer of wartime operational control, 
relocation of the U.S. military garrison and other matters, followed 
by a question and answer session. 
 
A top Seoul military source said, "U.S. forces have actively agreed 
to discuss the revision issue.  Therefore, the two sides are highly 
 
SEOUL 00001066  006 OF 006 
 
 
likely to launch a full-fledged discussion on the missile guideline 
revision as early as October, when the 41st Security Consultative 
Meeting is scheduled." 
 
 
The missile guideline puts a substantial restriction on South 
Korea's development of mid and long-range ballistic missiles.  Under 
a bilateral agreement with Washington signed in the 1970s, Seoul 
agreed not to develop or possess missiles with a range exceeding 180 
kilometers and capable of carrying warheads weighing more than 500 
kilograms. 
 
The late President Park Chung-hee had originally pledged to 
independently develop a missile with a range of 300 kilometers, but 
the signing of the 1979 agreement reduced that figure to 180 
kilometers, a range that covers the North Korean capital of 
Pyongyang. 
 
(This is a translation provided by the newspaper, and it is 
identical to the Korean version.) 
 
 
SEOUL SEEKS RENEGOTIATION OF NUCLEAR PACT 
(Chosun Ilbo, July 7, Front page) 
 
By Reporter Choi Gyung-un 
 
Seoul is considering a taskforce to deal with a renegotiation of the 
Atomic Energy Agreement with the U.S. that would enable South Korea 
to expand nuclear activities.  Foreign Minister Yu Myung-hwan on 
Monday said the taskforce could be led by the Foreign Ministry's 
special ambassador for energy and resources "in cooperation with 
other government agencies concerned." 
 
Minister Yu spoke in the National Assembly's Foreign Affairs, Trade 
and Unification Committee.  "The government will make preparations 
to begin negotiations in the second half of this year for the 
purpose of getting the maximum peaceful and commercial use of atomic 
power reflected in the agreement," he said. 
 
Minister Yu said that the two countries will discuss ways of 
reprocessing, including so-called pyro-processing at high 
temperatures.  Unlike the more common wet reprocessing technology, 
pyro-reprocessing, also known as a dry recycling, offers nearly zero 
possibility of nuclear arms use, given that it makes it difficult to 
extract pure plutonium.  Asked by GNP lawmaker Yun Sang-hyeon if 
pyro-reprocessing does not violate the Nuclear Non-Proliferation 
Treaty (NPT) or the Joint Declaration on the Denuclearization of the 
Korean Peninsula that took effect in 1992, Minister Yu said it 
doesn't.  Meanwhile, the National Assembly Unification, Foreign 
Affairs and Trade Committee decided to push to set up a subcommittee 
to discuss the issue of using nuclear energy peacefully, including a 
revision of the Seoul-Washington nuclear cooperation agreement. 
Committee Chairman Park Jin said, "We will actively push a plan to 
set up a subcommittee tentatively named "Subcommittee on Diplomatic 
Strategies for Peaceful Uses of Atomic Energy." 
 
(We have compared the English version on the website with the Korean 
version and added some sentences to make them identical.) 
 
 
STEPHENS