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UNCLAS SECTION 01 OF 03 SEOUL 001186 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL PGOV MARR ECON KPAO KS US
SUBJECT: SEOUL - PRESS BULLETIN; July 29, 2009 
 
TOP HEADLINES 
------------- 
 
 
Chosun Ilbo, JoongAng Ilbo, Segye Ilbo 
Kumho Asiana Chairman Resigns over Sibling Feud 
 
Dong-a Ilbo 
Economic Fears Linger Despite Recovery Signs; with ROKG Running out 
of Budget, ROK Economy May Face a "Double Dip Recession" in Third 
Quarter If Corporate Investment and Consumption Stay Lackluster 
 
Hankook Ilbo, Seoul Shinmun 
Prosecutor-General, Fair Trade Chief Named 
 
Hankyoreh Shinmun 
Ssangyong Motor Labor, Management Engaging in Behind-the-Scenes 
Talks to Prevent Confrontation between Both Sides 
from Heading for Disaster 
 
 
DOMESTIC DEVELOPMENTS 
--------------------- 
 
According to the Foreign Affairs and Trade Ministry, the USTR has 
started collecting opinions on the KORUS FTA from stakeholders and 
Congress to fully understand the exact nature of concerns that have 
been raised about the KORUS FTA, for the first time since President 
Barack Obama took office. (JoongAng, Hankyoreh, Segye, Seoul) 
 
 
INTERNATIONAL NEWS 
------------------ 
 
State Department Spokesman Ian Kelly, in a July 27 regular briefing, 
said that bilateral talks with North Korea are possible only within 
the framework of the Six-Party Talks, effectively rejecting the 
North's proposal for bilateral talks. (Hankook, Hankyoreh, Segye, 
Seoul, KBS) 
 
According to the Dandong News, a regional newspaper in China, 
Chinese border police have seized 70 kg of the strategic metal 
"vanadium" bound for North Korea, foiling an attempt to smuggle a 
material used to make missile parts. (Chosun, JoongAng, Dong-a, 
Hankook, Segye) 
 
 
MEDIA ANALYSIS 
-------------- 
 
-N. Korea 
--------- 
Most ROK media quoted State Department Spokesman Ian Kelly as saying 
in a July 27 regular briefing that bilateral talks with North Korea 
are possible only within the framework of the Six-Party Talks.  Most 
media interpreted this as a de facto U.S. rejection of North Korea's 
proposal for direct talks. 
 
In a related development, conservative Dong-a Ilbo editorialized: 
"Pyongyang has tried to hold bilateral talks with Washington, 
whenever it faced obstacles due to its nuclear program, without 
giving up its nuclear ambitions.  This U.S. rejection has clearly 
showed Washington's determination not to be deceived by North Korea 
any longer. ... If the North genuinely wants to resolve its nuclear 
issue through dialogue, it must first improve strained inter-Korean 
ties, instead of seeking direct talks with the U.S.  We truly hope 
that North Korea returns to the Six-Party Talks with sincerity." 
 
Most ROK media also gave front-and inside page play to a July 28 
report by the Dandong News, a regional newspaper in China, saying 
that Chinese border police have seized 70 kg of the strategic metal 
"vanadium" bound for North Korea, foiling an attempt to smuggle a 
material used to make missile parts.  According to media reports, 
 
SEOUL 00001186  002 OF 003 
 
 
although the seizure is in line with China's own export controls, 
Chinese analysts observed that Beijing is stepping up inspections on 
road and rail traffic into North Korea to help enforce tightened UN 
sanctions against North Korea. 
 
 
OPINIONS/EDITORIALS 
-------------------- 
 
¶N. KOREA NEEDS 6-WAY TALKS, NOT BILATERAL TALKS 
(Dong-a Ilbo, July 29, 2009, Page 27) 
 
The spokesman for the U.S. Department of State told a news briefing 
Monday that Washington is willing to talk to North Korea through the 
Six-Party nuclear dialogue if Pyongyang implements specific 
measures.  North Korea had said last week, "We are ready to meet 
(the U.S.)," and added Monday, "We have a different way of 
conversation to address the current issue," demanding bilateral 
talks.  The U.S., however, rejected North Korea's offer. 
 
It is a positive sign that North Korea has stopped its harsh 
rhetoric and proposed dialogue since its second nuclear test.  Yet 
the timing and format are key.  Pyongyang proposed talks right 
before the U.S.-China Strategic and Economic Dialogue, at a time 
when sanctions loom on North Korea under U.N. Security Council 
Resolution 1874.  The Stalinist country wants bilateral talks rather 
than Six-Party Talks with the U.S.  It also wants to avoid 
international isolation and sanctions by catering to the U.S. - 
which wields real power - and shaking up China. 
 
Pyongyang has tried to hold bilateral talks with Washington whenever 
it faced obstacles due to its nuclear program, but without giving up 
its nuclear ambitions.  This U.S. rejection has clearly showed 
Washington's determination not to be deceived any longer by North 
Korea.  The Obama Administration has stressed these principles 
several times, saying there is no reward for bad behavior and 
rejecting talks that exclude South Korea.  American hawks pressing 
for sanctions instead of dialogue are gaining power.  The 
international community is also firm in imposing sanctions.  North 
Korea must face this reality. 
 
The only way for Pyongyang to survive is to get political and 
economic compensation in return for giving up its nuclear program. 
U.S. Secretary of State Hillary Clinton recently said, "If North 
Korea goes the path of irreversible denuclearization, we will offer 
a comprehensive package - the normalization of the U.S.-North Korea 
relationship, the establishment of a permanent peace, and energy and 
economic assistance."  This idea came based on a consensus with 
South Korea. 
 
Last week before the strategic and economic dialogue between the 
U.S. and China, President Obama said in his opening speech that 
Washington will cooperate with Beijing to remove Pyongyang's nuclear 
program.  North Korea is mistaken if it believes China will be on 
its side forever.  If the North genuinely wants to resolve its 
nuclear issue through dialogue, it must first improve strained 
inter-Korean ties instead of seeking direct talks with the U.S.  We 
truly hope that North Korea returns to the Six-Party Talks with 
sincerity." 
 
(This is a translation provided by the newspaper, and it is 
identical to the Korean version.) 
 
 
FEATURES 
--------- 
 
USTR STARTS TO SEEK OPINIONS ON KORUS FTA FROM INTERESTED PERSONS 
(JoongAng Ilbo, July 29, 2009, Page 19) 
 
By Reporters Kim Sun-ha and Kim Pil-kyu 
 
The Office of the U.S. Trade Representative (USTR) has started 
collecting opinions on the KORUS FTA for the first time since 
 
SEOUL 00001186  003 OF 003 
 
 
President Barack Obama took office. 
 
The Ministry of Foreign Affairs and Trade said on July 28 that the 
USTR decided to publish an official notice titled "Request for 
Comments Concerning Free Trade Agreement with the ROK" in the July 
27 Federal Register and solicit comments from interested persons by 
September 15. 
 
The USTR says in the Federal Register that it seeks comments 
regarding: how implementation of the FTA will affect trade between 
the ROK and the U.S., in general, and with respect to particular 
goods or services; economic costs and benefits of removing tariffs 
and non-tariff barriers affecting trade between the two countries to 
U.S. workers, farmers, ranchers, businesses and consumers; and any 
additional steps that one or both governments should take to address 
specific concerns regarding the FTA and the bilateral trade and 
investment relationship. 
 
An (ROK) Foreign Ministry official said that the USTR notified the 
ROKG of its plan to solicit comments before publishing it in the 
Federal Register notice. 
 
This action came after the KORUS FTA wasn't ratified by lawmakers 
from either country.  The Foreign Ministry official noted that the 
U.S. auto industry has held negative views on the trade deal.  The 
official expressed his hope that positive comments will be submitted 
in this process to accelerate ratification of the trade pact.  But 
there are concerns that numerous comments calling for "additional 
measures" would spark controversy over renegotiation. 
 
 
STEPHENS