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UNCLAS SECTION 01 OF 05 SEOUL 001200 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL PGOV MARR ECON KPAO KS US
SUBJECT: SEOUL - PRESS BULLETIN; July 30, 2009 
 
TOP HEADLINES 
------------- 
 
 
Chosun Ilbo 
ROK, Japan Take Different Approaches 
to Treating Early Stages of Thyroid Cancer 
ROK: "Let's Do Surgery" vs. Japan: "Let's Watch for a While" 
 
JoongAng Ilbo 
Wage Hikes Larger in Independent Union Plants 
 
Dong-a Ilbo 
Ssangyong Motor Labor, Management Near Agreement 
on Rehiring Some Laid-off Workers 
 
Hankook Ilbo 
Despite Signs of Economic Recovery, Experts Think It is "Still" Too 
Early to Increase Interest Rates 
 
Hankyoreh Shinmun 
"(College) Admissions Officer System" Pursued by ROKG Breeds 
"High-Priced" Private Consulting Business Tailored 
to the Needs of Students and Parents 
 
Segye Ilbo, Seoul Shinmun 
Official Seal ID System to be Abolished in Five Years 
 
 
DOMESTIC DEVELOPMENTS 
--------------------- 
 
Adm. Timothy Keating, Commander of U.S. Pacific Command, told 
reporters in Washington yesterday that the U.S. President and 
Secretary of Defense remain committed to the planned transfer of 
wartime operational control to the ROK in April of 2012, despite 
North Korea's recent nuclear test. (KBS) 
 
 
INTERNATIONAL NEWS 
------------------ 
 
Wrapping up two days of the bilateral Strategic and Economic 
Dialogue yesterday, the U.S. and China reaffirmed their commitment 
to proactively implement UN Security Council Resolution 1874 against 
North Korea. (Chosun, Segye, Seoul, all TVs) 
 
According to Chinese steel industry officials, a Chinese steel 
company recently halted its bronze mine development project with a 
North Korean company sanctioned by the UN Security Council after the 
North conducted a second nuclear test. (Chosun, Hankook, Hankyoreh, 
Seoul) 
 
UN Secretary-General Ban Ki-moon told reporters yesterday that he is 
willing to go to North Korea if it would help foster dialogue on the 
North's nuclear program. He also welcomed the North's recent offer 
to hold bilateral talks with the U.S., saying that dialogue is vital 
in any format and is the only way to resolve the nuclear issue. (All 
TVs) 
 
 
MEDIA ANALYSIS 
-------------- 
 
-U.S.-China Strategic and Economic Dialogue/N. 
--------------------------------------------- Korea 
----- 
Most ROK media gave attention to yesterday's conclusion of the 
U.S.-China Strategic and Economic Dialogue (S&ED), reporting that 
the two countries, in a joint statement, emphasized the importance 
of implementing UNSC Resolution 1874 against North Korea and 
resolving the North's nuclear issue through peaceful means. 
 
 
SEOUL 00001200  002 OF 005 
 
 
Conservative Chosun Ilbo commented that any concrete mention of the 
North Korean problem in the joint statement is a big step forward 
for the U.S. in getting agreement from China over the issue. 
 
Conservative Dong-a Ilbo editorialized: "While the U.S. and the 
Soviet Union, the G2 of the Cold War era, confronted each other, the 
U.S. and China, the 'G2 of the 21st century,' chose to 'cooperate 
with each other as partners.'  This principle will be applied in 
resolving pending bilateral and international issues.  ... A change 
in U.S.-China relations is directly related to our economy and 
security.  The ROKG should understand a 21st century world order, 
which the U.S. and China are preparing, and come up with necessary 
countermeasures.  In particular, regarding Korean Peninsula issues, 
including the North Korean nuclear issue, the ROKG should make its 
opinion fully known so that the U.S. and China do not arbitrarily 
have negative influence over our fate." 
 
Citing Chinese steel industry officials, most newspapers reported 
that a Chinese steel company developing a bronze mine in North Korea 
with a North Korean company sanctioned by the UNSC recently called 
an abrupt halt to the project.  According to news reports, the 
Chinese firm sent a letter to NHI Shenyang Mining Machinery, the 
company it had commissioned to build facilities for the mine in 
North Korea, telling it to stop construction.  An industry source in 
China was cited: "The Chinese government apparently persuaded the 
firm to stop the project as Beijing takes part in the UN sanctions. 
Otherwise, it's unusual for a project to be stopped at this late 
stage." 
 
All TV networks quoted UN Secretary-General Ban Ki-moon as telling 
reporters yesterday that he is willing to go to North Korea if it 
would help foster dialogue on the North's nuclear program.  He was 
further quoted as welcoming the North's recent offer to hold 
bilateral talks with the U.S., saying that dialogue is vital in any 
format and is the only way to resolve the nuclear issue. 
 
 
OPINIONS/EDITORIALS 
------------------ 
 
U.S.-CHINA TALKS ARE A WAKE-UP CALL FOR S. KOREA 
(Chosun Ilbo, July 30, 2009, Page 27) 
 
The U.S.-China Strategic and Economic Dialogue that ended in 
Washington D.C. on Wednesday was a sobering reminder that the two 
countries will form the poles of global power in the 21st century. 
In his opening speech, U.S. President Barack Obama described China 
as Washington's most important partner. 
 
The two countries discussed global security issues, including North 
Korea's and Iran's nuclear programs, the war in Afghanistan, 
problems in Pakistan, the spread of Islamic fundamentalism in Africa 
and the crisis in Darfur.  It is becoming difficult for the U.S. to 
solve global problems without China's help.  The two countries also 
agreed to join hands to overcome the global financial crisis by 
promoting an international financial system, resolving trade 
imbalances and dealing with the weak U.S. dollar.  An agreement 
whereby China will contribute to stimulating the global economy by 
boosting its domestic consumption symbolizes the increasing 
importance of the Chinese economy in the world. 
 
China's decision to play a major role in dealing with climate 
change, which was an issue Beijing had opted to stay out of until 
now, reflects its willingness to take the lead in tackling the 
world's problems.  The U.S. and China also agreed to resume 
high-level military talks within the next one or two months. 
China's military might is also growing rapidly. 
 
The U.S.-China talks have a special meaning for Seoul because the 
two countries discussed in Seoul's absence vital problems related to 
the Korean Peninsula.  It would be unimaginable for the two 
countries to discuss issues involving the future of Japan, the U.K. 
or France in the absence of representatives from those countries, 
but issues of crucial importance to South Korea seem to follow 
 
SEOUL 00001200  003 OF 005 
 
 
different rules.  This is the reality facing South Korea in the new 
bipolar world order. 
 
The U.S. and China discussed the North Korean nuclear crisis, but 
the matter cannot be resolved outside the context of broader issues 
on the Korean Peninsula.  Trilateral talks between the U.S., China 
and Japan are also scheduled. It appears that after 100 years, South 
Korea's fate is once again being decided based on blueprints drawn 
up by other countries.  And the hard truth is South Korea is not 
powerful enough to change this. 
 
North Korea's social and political systems are moribund, and 
unification can happen within 20 to 30 years at the latest.  China's 
stance at that point will have a direct effect on the fate of the 
Korea Peninsula.  Looking at Seoul-Beijing relations at the moment, 
it is not difficult to gauge what that stance would be.  Unless 
there is a significant change in the Chinese outlook, the 
peninsula's future looks anything but rosy. 
 
It is true that the South Korea-U.S. alliance puts fundamental 
limitations on South Korea-China ties.  But it is not entirely 
impossible for Seoul to build trust with Beijing while maintaining 
the alliance.  Already, the economies of South Korea and China have 
grown inseparable.  South Korea is China's third-largest trading 
partner.  The "win-win" framework that is being created in the 
economic sphere can also be achieved in the political and military 
arenas.  Nothing is impossible in bilateral relations.  If 
connections deepen and the two countries grow closer, the day may 
come when Beijing decides that a unification of the Koreas led by 
the South would not harm China. 
 
Stressing the importance of continued dialogue, Obama quoted the 
Chinese philosopher Mencius in his opening speech, saying, "This is 
comparable to people walking on paths through grasslands.  As long 
as people keep walking on the path, the path will remain there.  If 
people don't walk on the path, weeds and grasses will grow back and 
obscure it."  This probably best illustrates how South Korea must 
deal with China. 
 
(This is a translation provided by the newspaper, and it is 
identical to the Korean version.) 
 
 
SOUTH KOREA'S PLACE IN THE G2 ERA 
(Hankyoreh Shinmun, July 30, 2009, Page 27) 
 
The first U.S.-China Strategic and Economic Dialogue (S&ED), which 
concluded in Washington two days ago, demonstrated to the world the 
two countries' determination to lead the international order in the 
21st century.  One could very well call it the beginning of the "G2 
Era." 
 
The bilateral ministerial-level talks provided a setting for 
broad-ranging discussions on pressing diplomatic and economic 
issues, as well as regional and global issues.  In the area of the 
economy in particular, the U.S. made plans to raise its savings rate 
and reduce its deficit with stronger regulations and financial 
oversight, while China made plans to increase domestic demand and 
expand its social safety net and health insurance coverage.  The two 
countries took each other's interests into account as they 
fine-tuned macro-level policy to set a framework for the global 
economy.  In addition, they signed a memorandum of understanding on 
issues related to energy, the environment and climate change, which 
demonstrates that they intend to lead international discussion 
related to these areas. 
 
Attention is also being drawn to the two countries' agreement to 
cooperate in a response to terrorism and the North Korean and 
Iranian nuclear programs.  This could signal increasingly closer 
discussions between the U.S. and China on the North Korean nuclear 
issue, and such cooperation would increase the efficacy of efforts 
to resolve the nuclear issue.  However, concerns remain that any 
resolution to nuclear issues involving several nations will be 
molded into a form primarily suited to these two countries' 
 
SEOUL 00001200  004 OF 005 
 
 
interests.  As far as the Korean Peninsula is concerned, South Korea 
should not simply stand by and watch the U.S. and China develop 
stronger relations. 
 
"The relationship between the U.S. and China will shape the 21st 
century, which makes it as important as any bilateral relationship 
in the world," said U.S. President Barack Obama in his opening 
speech at the S&ED.  China, for its part, appeared to share these 
sentiments.  It sent a large delegation of some 150 people to the 
talks, and the participants in the meeting emphasized that the two 
nations were "all in the same boat."  It is encouraging that the 
U.S. and China are avoiding hegemonic competition and cooperating in 
such a way that may result in something positive not only for 
themselves, but for the world as a whole. 
 
From South Korea's standpoint, however, stronger U.S.-China 
relations may have some negative ramifications, namely the full 
force revival of superpower politics in Northeast Asia.  While it 
has been put on the back burner for now, strategic dialogue taking 
place between the U.S., China and Japan also represents a similar 
move.  Since the latter half of the 19th century, South Korea has 
had the bitter historical experience of becoming the sacrificial 
lamb in superpower politics.  Although we may agree with or welcome 
some of the efforts being made by superpowers surrounding the Korean 
Peninsula, it behooves our government to make active and balanced 
efforts to maintain South Korea's interests and values. 
 
(This is a translation provided by the newspaper, and it is 
identical to the Korean version.) 
 
 
PREPARE FOR AN INTERNATIONAL ORDER PURSUED BY U.S. AND CHINA 
(Dong-a Ilbo, July 30, page 27) 
 
The first U.S-China Strategic and Economic Dialogue held in 
Washington from July 27-28 garnered international attention by 
heralding the advent of a "G2 Era."  The number of people in the 
Chinese delegation, headed by Vice Premier Wang Qishan and State 
Councilor Dai Bingguo, exceeded 150.  The U.S. delegation, led by 
Secretary of State Hillary Clinton and Secretary of Treasury Timothy 
Geithner, was also large-scale.  High-ranking officials from both 
countries held in-depth discussions on major issues confronting the 
world, which ranged from the economic crisis to the North Korean 
nuclear issue.  In the event's opening speech, President Obama 
attached great meaning to bilateral relations, saying that 
U.S.-China relations would shape the 21st century. 
 
The U.S. and China pledged to work closely together to take the 
necessary steps to overcome the global economic crisis.  In the 
diplomatic and security areas, both sides agreed to bolster 
bilateral talks to deal with security threats in the Middle East, 
Central and South America and Africa.  However, what the two sides 
spelled out in the joint statement is considered just a 
reaffirmation of principles.  Therefore, some observers say that the 
Dialogue was all talk but failed to yield any tangible results. 
 
The true significance of this meeting, however, should be sought not 
from the present but from the future.  Secretary Clinton noted that 
the Dialogue was a forum for exchanging ideas.  As Secretary of 
State Clinton and Secretary of Treasury Geithner said in their July 
27 contribution to The Wall Street Journal, few global problems can 
be solved without the U.S. and China (working) together.  The two 
nation's promises and vows have a great deal of impact on other 
nations, especially in regard to  North Korea and its nuclear 
program.  The U.S. and China said that they would support the 
Six-Party Talks and implement UN Security Council Resolution 1874. 
U.S.-China dialogue inevitably applies strong pressure on the North, 
which has rejected the Six-Party Talks and demanding bilateral talks 
with the U.S. 
 
While the U.S. and the Soviet Union, the G2 of the Cold War era, 
confronted each other, the U.S. and China, the "G2 of the 21st 
century," chose to "cooperate with each other as partners."  This 
principle will be applied in resolving pending bilateral and 
 
SEOUL 00001200  005 OF 005 
 
 
international issues, including China's possession of U.S. bonds 
worth over $800 billion (the biggest issue between the two nations), 
China's trade surplus of over $260 billion with the U.S., and an 
appreciation of the yuan. 
 
A change in U.S.-China relations is directly related to our economy 
and security.  The ROKG should understand a 21st century world 
order, which the U.S. and China are preparing, and come up with 
necessary measures.  In particular, regarding Korean Peninsula 
issues, including the North Korean nuclear issue, the ROKG should 
make its opinion fully known so that the U.S. and China do not 
arbitrarily have negative influence over our fate. 
 
 
STEPHENS