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UNCLAS SECTION 01 OF 04 SEOUL 001116 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL PGOV MARR ECON KPAO KS US
SUBJECT: SEOUL - PRESS BULLETIN; July 15, 2009 
 
TOP HEADLINES 
------------- 
 
Chosun Ilbo, Hankook Ilbo, Segye Ilbo, All TVs 
Prosecutor-General Nominee Withdraws 
over Dubious Financial Dealings 
 
JoongAng Ilbo 
President Lee: "How Could the Nominee Tell a Lie 
during His Confirmation Hearing?" 
 
Dong-a Ilbo, Seoul Shinmun 
President Lee Accepts 
Prosecutor-General Nominee's Withdrawal 
 
Hankyoreh Shinmun 
Nominee's Withdrawal a Fresh Setback for President Lee 
 
 
DOMESTIC DEVELOPMENTS 
--------------------- 
 
USFK Commander Gen. Walter Sharp, in a July 14 press conference in 
New York, said that the U.S. is working out an "extensive plan" to 
deal with North Korea's continued provocations. (Dong-a, all TVs) 
 
 
INTERNATIONAL NEWS 
------------------ 
 
According to Radio Free Asia (RFA), Assistant Secretary of State for 
East Asian and Pacific Affairs Kurt Campbell said in a written reply 
for his confirmation hearing early last month that Washington is 
closely watching possible nuclear ties between North Korea and 
Myanmar. (Dong-a, Hankyoreh) 
 
The Obama Administration is continuing efforts to pressure North 
Korea, this time using the Non-Aligned Movement (NAM) summit which 
has been ongoing in Cairo, Egypt since July 11. According to U.S. 
diplomatic sources, the demands of North Korea, a full member of the 
Movement, are not being accepted at the summit due to the U.S.'s 
behind-the-scenes diplomacy. (Chosun) 
 
According to an (ROK) government official, the UN Security Council, 
as early as July 15, will designate additional North Korean 
companies and individuals for sanctions as a result of that 
country's second nuclear test. (Chosun, Segye, Seoul) 
 
William Newcomb, a former senior economic adviser to the 
Intelligence and Analysis Office at the U.S. Treasury Department, 
said during a July 13 interview that North Korea has moved its trade 
foothold to Malaysia following the freezing of its funds held in 
Macau-based Banco Delta Asia (BDA). (Chosun) 
 
 
MEDIA ANALYSIS 
-------------- 
 
-North Korea 
------------ 
Conservative Dong-a Ilbo and left-leaning Hankyoreh Shinmun replayed 
a July 13 Radio Free Asia (RFA) report quoting Assistant Secretary 
of State for East Asian and Pacific Affairs Kurt Campbell as saying 
in a written reply for his confirmation hearing early last month: 
"Myanmar and North Korea are strengthening their partnership.  The 
U.S. is closely looking into the possibility of North Korea 
supporting Myanmar's nuclear development." 
 
Conservative Chosun Ilbo and Segye Ilbo and moderate Seoul Shinmun 
ran front-and inside-page reports that the UN Security Council 
(UNSC), as early as July 15, will designate additional North Korean 
 
SEOUL 00001116  002 OF 004 
 
 
companies and individuals for sanctions as a result of that 
country's second nuclear test.  Chosun quoted an ROKG official as 
saying: "Discussions to designate additional entities and persons to 
be subject to travel bans and freezing of assets have entered the 
final stage.  In the past, the blacklist only enumerated 
enterprises, but the new one will list the names of officials 
involved." 
 
Conservative Chosun Ilbo carried an interview with William Newcomb, 
a former senior economic adviser to the Intelligence and Analysis 
Office at the U.S. Treasury Department, in which he claimed: "The 
Treasury Department understands that North Korea has moved its trade 
foothold to Malaysia following the freezing of its funds held in 
Macau-based Banco Delta Asia (BDA).  This is why Ambassador Philip 
Goldberg, Coordinator for the Implementation of UNSC Resolution 
1874, recently visited Kuala Lumpur." 
 
Citing U.S. diplomatic sources, Chosun also reported that the effect 
of the Obama Administration's efforts to sanction North Korea is 
also being felt at the Non-Aligned Movement (NAM) summit which has 
been ongoing in Cairo, Egypt since July 11.  According to the Chosun 
report, the demands of North Korea, a full member of the Movement, 
are not being accepted at the summit because of the U.S.'s 
behind-the-scenes diplomacy.  The report went on to say that it is 
highly unlikely that the document to be adopted at the end of the 
summit will support the North's boycott of the Six-Party Talks and 
include the "Korean Peninsula-related clause" which the summit has 
previously adopted to reflect North Korea's position. 
 
 
 
OPINIONS/EDITORIALS 
-------------------- 
 
NEW U.S. POINT MAN IN EAST ASIA HAS HIS WORK CUT OUT FOR HIM 
(Chosun Ilbo, July 15, 2009, page 33) 
 
By Senior Reporter Kang In-sun 
 
The new U.S. Assistant Secretary of State for East Asian and Pacific 
Affairs, Kurt Campbell, is visiting Seoul on Saturday on the first 
leg of his first official overseas tour.  Affable, capable and 
enjoying an excellent personal network, Campbell has built up his 
career in academia, think tanks and the administration.  He has many 
friends in Seoul, both inside and outside the government. 
 
The role is always important, but Campbell's job seems to be more 
difficult than before.  His predecessor Christopher Hill benefited a 
lot from the Six-Party Talks on North Korea's nuclear program. 
Despite the absence of meaningful progress in the negotiations, he 
appeared to be constantly doing things, making the rounds and 
telling the media all about it. 
 
When representatives of the ROK, the U.S., China, Japan, Russia and 
North Korea convened in Beijing, they appeared to be headed straight 
for a resolution of the North Korean nuclear issue.  But despite 
their meetings since October 2002, when the North Korean nuclear 
crisis started, Pyongyang has since tested two nuclear devices and 
now has more nuclear weapons and missiles with longer range.  That 
is why cynics say the biggest achievements of the Six-Party Talks 
were giving people a false sense that the government was doing 
something and providing diplomats with jobs. 
 
Demands on Campbell will be more exacting because the era of 
"Christopher Hill-style diplomacy" has passed.  Hill appeared to do 
something when he just travelled to three North East Asian countries 
(the ROK, Japan and China.)  Fears about the nuclear threat North 
Korea poses to the rest of the region cannot so easily be dispelled. 
 There are calls to revise the ROK-U.S. Atomic Energy Agreement and 
missile accord because of the changed situation. 
 
In "The Nuclear Tipping Point," a book he wrote five years ago, 
Campbell explained the situations in which a country is prompted to 
consider nuclear development.  That includes when U.S. foreign 
 
SEOUL 00001116  003 OF 004 
 
 
policy changes in a direction unable to provide allies with full 
security guarantees, when problems occur with the non-proliferation 
system, when regional power balance is broken, when domestic 
political needs arise, and when the technology is easily available. 
 
Malcolm Gladwell, the author of "Tipping Point," says the title 
means a dramatic moment when a phenomenon spreads instantly after a 
balance is broken.  It has three features: It is strongly 
contagious, it turns on a small thing with enormous effect, and the 
change takes place at a dramatic moment.  Combine "nuclear" and 
"tipping point," and the results can be horrendous.  Former CIA 
director George Tenet warned as early as 2003 that the domino theory 
in the 21st century will revolve around the nuclear issue. 
 
The U.S. tends to regard the ROK as a security-insensitive country 
where the stock market does not budge even if the North carries out 
a nuclear test.  Having lived for so long with a neighbor that 
threatens to blow us up, the ROK's security consciousness has been 
dulled, according to New York Times columnist Thomas Friedman.  But 
now that the North's nuclear and missile technologies are advancing 
every day, we can no longer afford that complacency. 
 
"Long-term U.S. world strategy and nuclear policy are the most 
important elements for countries, either rogue or responsible, 
wishing to develop nuclear weapons to determine their positions," 
Campbell wrote.  What the George W. Bush Administration dreaded most 
was nuclear proliferation to rogue states and terrorist 
organizations.  The Obama Administration confronts a situation where 
it must be concerned about such an alternative from a totally 
unexpected corner.  It must take into account regional wishes to 
adjust the power balance, even if it cannot agree to nuclear 
development by other countries in the region.  That is why Campbell 
carries a heavy briefcase on his Asia tour. 
 
(We have compared the English version on the website with the Korean 
version and made some changes to make them identical.) 
 
 
FEATURES 
-------- 
 
GEN. SHARP: "IT IS UNNECESSARY TO REVIEW REVISION OF ROK-U.S. 
MISSILE GUIDELINES" 
(Yonhap News, July 15, 2009) 
 
"We are fully prepared for any attack from North Korea" 
 
By New York Correspondent Kim Ji-hoon 
 
With regard to a recently controversial revision of the ROK-U.S. 
missile guidelines, USFK Commander Gen. Walter Sharp said on July 
14, "We did not receive a request from the ROKG, and, therefore, I 
think that we do not need to review it for the time being." 
 
He made the statement during a press conference at the New York 
Foreign Press Center, when asked about the possibility of discussing 
the revision of the ROK-U.S. missile guidelines at the annual 
ROK-U.S. Security Consultative Meeting (SCM). 
 
He added, "Since that is a matter to be discussed with the 
Department of State, you should ask the Department of State 
directly." 
 
Gen. Sharp stressed, "The ROK-U.S. alliance is strong enough to 
defend against any attack from North Korea, and North Korea must 
stop its nuclear threat and fulfill its promise to denuclearize." 
 
"We are prepared to deal with any threat from North Korea," he 
added, urging Pyongyang to end its threats through nuclear tests and 
missile launches, move toward denuclearization, and concentrate its 
efforts on taking care of its people. 
 
He explained that in the past, ROK-U.S. military drills were focused 
on exercises from a military perspective, but, these days, they are 
 
SEOUL 00001116  004 OF 004 
 
 
aimed at preparing for an actual situation involving North Korea's 
possible provocations. 
 
Saying that the U.S. and (North Korea's) other neighboring countries 
are urging the North to resume the Six-Party Talks on the 
denuclearization of the Korean Peninsula, he remarked that the work 
of enforcing the sanctions imposed by the UN after North Korea's 
nuclear test is under way. 
 
In particular, while emphasizing that the U.S. and the ROK can 
intercept a North Korean missile, Gen. Sharp said he is confident 
that they can defeat any land or sea attacks quickly and 
successfully. 
 
Regarding the speculation that North Korea may be behind Distributed 
Denial of Service (DDoS) attacks against the websites of major 
organizations in the U.S. and the ROK, he explained, "Since we are 
currently working to see where the attacks came from, I cannot 
confirm it yet," adding that although it was a worry, the U.S. 
military has not been hurt by the attacks." 
 
In reference to the North Korean ship Kang Nam, which has reportedly 
returned to North Korea, he said that there was a possibility that 
the ship may have carried banned materials, such as weapons, adding, 
"That is a matter of grave concern." 
 
As for the failing health of Chairman of North Korea's National 
Defense Commission Kim Jong-il or the succession issue in the North, 
he said, "I cannot confirm North Korea's internal political issues 
or intelligence matters," adding, "We urge the North to take a path 
toward denuclearization, and even if the North does not do so, we 
are fully ready for a North Korean threat." 
 
Regarding the possibility of an additional nuclear test or missile 
launch, he said, "It is up to Chairman Kim, but we are hoping and 
pushing for him to change his provocative stance." 
 
(Editor's Note:  The same story was also carried by Dong-a Ilbo on 
its front page.) 
 
 
 
STEPHENS