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UNCLAS SECTION 01 OF 06 SEOUL 001316 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL PGOV MARR ECON KPAO KS US
SUBJECT: SEOUL - PRESS BULLETIN; August 17, 2009 
 
TOP HEADLINES 
------------- 
 
 
Chosun Ilbo, JoongAng Ilbo, Dong-a Ilbo, Segye Ilbo, All TVs 
Hyundai Chairwoman Meets Kim Jong-il 
 
Hankook Ilbo, Hankyoreh Shinmun, Seoul Shinmun 
"New Flu" Claims Lives of Two Koreans 
 
 
DOMESTIC DEVELOPMENTS 
---------------------- 
 
President Lee Myung-bak, in an August 15 speech to mark the 64th 
anniversary of Korea's liberation from Japanese rule, proposed 
inter-Korean talks to reduce conventional arms and to build an 
economic community across the border. The president also stated that 
Seoul will pursue a "new peace initiative" if the North shows a 
resolve to denuclearize. (All) 
 
According to the North Korean media, Hyundai Group Chairwoman Hyun 
Jung-eun finally met with North Korean leader Kim Jong-il yesterday, 
after extending her stay in North Korea five times. (All) 
 
North Korea, in an August 15 statement, denounced the ROK-U.S. 
"Ulchi Freedom Guardian" military exercise, which is slated to run 
from today through August 27, as a "maneuver for a nuclear war" and 
warned it will react with "merciless retaliation." (All) 
 
ROK health authorities yesterday confirmed the deaths of a 
63-year-old woman and a man in his 50s from influenza A (H1N1) over 
the weekend, marking the first deaths in the country from the new 
epidemic that has killed almost 1,500 people worldwide since its 
outbreak in May. (All) 
 
 
INTERNATIONAL NEWS 
------------------- 
 
According to a source knowledgeable about North Korea-China 
relations, the Chief Chinese Delegate to the Six-Party Talks, Wu 
Dawei, will visit North Korea today to discuss the North Korean 
nuclear issue. He is the first high-ranking Chinese official to 
visit North Korea since the North's long-range rocket launch in 
April and its second nuclear test in May. (Hankyoreh) 
 
 
MEDIA ANALYSIS 
-------------- 
 
-N. Korea 
---------- 
President Lee Myung-bak's August 15 speech to mark the 64th 
anniversary of Korea's liberation from Japanese rule received wide 
press attention.  The ROK media reported that President Lee proposed 
inter-Korean talks to reduce conventional arms and to build an 
economic community across the border.  The president was further 
quoted as saying: "Seoul will pursue a 'new peace initiative' if the 
North shows a resolve to denuclearize." 
 
Conservative Chosun Ilbo, in an inside-page report entitled "Relaxed 
ROK, U.S. Policies toward North Korea," noted this proposal by 
President Lee and August 14 press remarks by Philip Crowley, 
Assistant Secretary of State for Public Affairs - in which he said 
the U.S. is willing to halt sanctions and resume dialogue with North 
Korea if there is a "political commitment" by the North to meet its 
obligations and to join in a dialogue - to argue that Seoul and 
Washington seem to be retreating from their demand that North Korea 
take substantial action to dismantle its nuclear program as 
conditions for resumed talks and aid.  The Chosun report portrayed 
these ROK and U.S. moves as "preparatory steps" toward dialogue with 
North Korea. 
 
SEOUL 00001316  002 OF 006 
 
 
 
Right-of-center JoongAng Ilbo editorialized: "President Lee's 'New 
Peace Initiative for the Korean Peninsula' offers methods for 
guaranteeing North Korea's existence and prosperity. ... The U.S. 
has also proposed a comprehensive package guaranteeing the existence 
of the North Korean regime and promising extensive economic aid on 
the condition that the North abandons its nuclear program.  This is 
a rare opportunity for Pyongyang.   North Korea is hoping to hold 
talks with the U.S. through various channels, after freeing two 
American journalists and an employee held in the Kaesong Industrial 
Complex.  However, the North, for its own sake, should come out with 
a strong and clear message that it will discard its nuclear 
ambitions and return to the Six-Party Talks." 
 
Hyundai Group Chairwoman Hyun Jung-eun's August 16 meeting with 
North Korean leader Kim Jong-il - after extending her stay in North 
Korea five times - also captured the attention of the ROK media. 
 
The specific content of what the two discussed is not known, but 
according to reports this morning by all TV networks, citing a joint 
press release from Hyundai Group and the North's Korea Asia-Pacific 
Peace Committee, which handles inter-Korean business ties, North 
Korea agreed to resume inter-Korean tourism projects, facilitate 
operation of the joint Kaesong Industrial Complex, and resume 
stalled reunions of separated families from the two Koreas in Mt. 
Kumgang on the day of Chusok (harvest moon day). 
 
Conservative Chosun Ilbo gave attention to North Korea's state-run 
Korean Central Television's report that the Hyundai chairwoman 
"presented a gift" to North Korean leader Kim Jong-il during the 
meeting, and speculated that she might have promised "humanitarian 
aid" in return for the release of a Hyundai Asan employee, who was 
freed last week after 136 days of detention. 
 
-Two Koreans Die of Influenza A 
------------------------------- 
All ROK media reported on the deaths of a 63-year-old woman and a 
man in his 50s from influenza A (H1N1) over the weekend, marking the 
first deaths in the country from the new epidemic that has killed 
almost 1,500 people worldwide since its outbreak in May. 
 
Carrying the identical headlines, "Flu Fears Return," most 
newspapers reported that there is a high chance that the number will 
soar once the weather gets colder.  Conservative Chosun Ilbo, in 
particular, cited a local expert in infectious diseases as claiming 
that the rapid spread of the virus in the southern hemisphere, where 
it is winter now, was a preview of what lies in store for the 
northern hemisphere this fall.  According to the Chosun report, in 
Argentina, 404 people have allegedly died from influenza A, the 
second highest fatality rate after the U.S., where 477 people have 
died.  In Brazil, 339 people died from H1N1. 
 
 
OPINIONS/EDITORIALS 
------------------- 
 
BALL IS IN NORTH KOREA'S COURT 
(JoongAng Ilbo, August 17, 2009, page 42) 
 
The government's "New Peace Initiative for the Korean Peninsula," 
outlined in a weekend address by President Lee Myung-bak on the 64th 
anniversary of national liberation, offers methods for guaranteeing 
North Korea's existence and prosperity. 
 
In particular, it presents detailed steps for cooperation, such as 
implementing new development projects and holding high-level talks 
for the realization of ROK-North Korea economic ties. 
 
Lee also proposed that the two sides talk about reducing 
conventional weapons.  If the North shows a willingness to discard 
its nuclear weapons program, the president said, the ROK would 
cooperate in various areas, including politically, economically and 
in military affairs. 
 
 
SEOUL 00001316  003 OF 006 
 
 
The North, eager to obtain assistance, has threatened the 
international community by building up its nuclear and missile 
programs.  Its economic development strategy relies on the concept 
of rehabilitation on its own strength.  However, the development of 
its nuclear weapons program over the past two decades hasn't 
succeeded in propping up the country.  One need look no further than 
the food crisis in the mid-1990s, when hundreds of thousands of 
people died.  The North still faces serious food issues, 
particularly in the area of distribution. 
 
In conclusion, unless North Korea backs off from its confrontational 
attitude against the international community, the country is headed 
for catastrophic defeat. 
 
In this vein, President Lee's stated hope that "the ROK and North 
Korea will have a candid and frank dialogue about what it will take 
for North Korea to give up nuclear weapons" attracts our attention. 
 
 
The U.S. has also proposed a comprehensive package guaranteeing the 
existence of the North Korean regime and promising extensive 
economic assistance on the condition that the North abandons its 
nuclear weapons program.  This is a rare opportunity for Pyongyang. 
 
 
North Korea is hoping to hold talks with the U.S. through various 
channels, after freeing two American journalists and an employee 
held in the Kaesong Industrial Complex. 
 
However, the North, for its own sake, should come out with a strong 
and clear message that it will discard its nuclear ambitions and 
return to the Six-Party Talks. 
 
(This is a translation provided by the newspaper, and it is 
identical to the Korean version.) 
 
 
LEE ADMINISTRATION'S NORTH KOREA STANCE KEEPS ROK ON SIDELINES 
(Hankyoreh Shinmun, August 17, 2009, page 27) 
 
Following former U.S. President Bill Clinton's visit to North Korea 
earlier this month, nations concerned with the Korean Peninsula have 
been moving quickly.  It seems as though attempts to form a new 
framework for negotiation are beginning in earnest.  Despite these 
efforts, the ROKG is bringing isolation onto itself by sticking to a 
hardline North Korea policy that is already clearly known to be 
unrealistic. 
 
It has been said that Vice Foreign Minister Wu Dawei, chief Chinese 
negotiator for the Six-Party Talks with North Korea, will be 
arriving in North Korea today.  It appears that China, as the 
host-nation of the Six-Party Talks, is stepping up efforts to create 
an atmosphere to restart the talks.  Moreover, two days ago, the 
U.S. State Department stated that in terms of conditions for a 
dialogue with North Korea, all that would be needed would be a 
political promise from North Korea to respect its duty to 
denuclearize and participate in the dialogue.  This statement takes 
one step back from the existing U.S. position of demanding concrete 
denuclearization measures from the North Korean government.  Every 
other Six-Party Talk nation is busy coordinating views on the 
methods to restart the Talks and North Korea-U.S. dialogue. 
 
Our government's attitude, however, does not demonstrate either the 
presence of mind or the will to lead in matters pertaining to the 
Korean Peninsula.  In his address to commemorate Independence Day 
two days ago, President Lee Myung-bak explained his North Korea 
policy, which is just more of the same Vision 3000 policy.  He also 
failed to make an offer to which the North Korean government would 
be able to respond, including (failing to express the) will to carry 
out the October 4 Summit Declaration and the June 15 Joint 
Declarations.  Indeed, the Lee Government is maintaining its 
existing goal of "denuclearization first," although the appropriate 
approach would be to advance denuclearization by supporting 
inter-Korean exchanges and cooperation, and actualizing plans to 
 
SEOUL 00001316  004 OF 006 
 
 
advance peace.  Lee's new demand for North Korea's reductions in 
conventional arms at this time, when even basic trust is lacking, is 
nothing but an empty verbal offensive. 
 
Hyundai Group Chairwoman Hyun Jeong-eun, who left for Pyongyang on 
Aug 10 for a scheduled three-day, two-night trip, extended her visit 
four times.  Meanwhile, things grew so entangled due to the fact 
that our government has been waiting and holding out its hand for 
unilateral North Korean surrender despite its advocacy for 
pragmatism.  As long as inter-Korean economic cooperation is unable 
to operate apart from inter-Korean relations as a whole, private 
companies cannot guarantee the safety and continuation of 
inter-Korean economic cooperation on their own. 
 
The ROKG is far behind international efforts to resolve the nuclear 
issue.  In inter-Korean relations, too, the contradictions of the 
existing policy grow more profound as time passes.  At this rate, 
even if full-scale nuclear talks begin, the ROK will simply stay on 
the sidelines.  It is time for the Lee Administration to have a deep 
awakening and to create change in its understanding of North Korea 
policy. 
 
(This is a translation provided by the newspaper, and it is 
identical to the Korean version.) 
 
 
ROK AS WORLD'S TENTH ECONOMIC POWER VS.  NORTH KOREA AS LAND OF 
DESPAIR 
(Dong-a Ilbo, August 17, 2009, page 31: EXCERPTS) 
 
In an August 15 speech commemorating the ROK's Independence Day, 
President Lee Myung-bak stated that it will pursue a "new peace 
initiative" for the Korean Peninsula.  Under the Initiative, Seoul 
will provide comprehensive support to North Korea in cooperation 
with the international community if the North abandons its nuclear 
program.  This matches the basic principles of the Vision 3000 
policy and the U.S.-proposed comprehensive package.  The five 
development projects for North Korea is a framework that goes beyond 
giving mere support, but calls for overall cooperation in the 
economy, education, finance, infrastructure and living quality, to 
lay the groundwork for the North to sustain itself. 
 
President Lee's proposal is noteworthy in that it is the first time 
that an ROK president made a suggestion to hold high-level talks 
aimed at reducing conventional arms and building an economic 
community.  However, the ROKG needs to pay attention to the opinion 
that the reduction of conventional arms is not feasible due to a 
lack of mutual trust between the ROK and North Korea.  North Korea 
had once insisted that Seoul and Pyongyang reduce their military by 
100,000 troops.  The reduction of conventional troops is a delicate 
issue that should be pursued along with neighboring Northeast Asian 
countries such as China and Japan. 
 
The international community has tried in vain to resolve the North 
Korean nuclear issue through dialogue for the past 10 years. 
However, North Korea's schemes and brinkmanship tactics will no 
longer pay off.  The ROK, the U.S., Japan and even China have joined 
in enforcing the UN Security Council's sanctions against North 
Korea, which were imposed due to Pyongyang's second nuclear test and 
missile launches. 
 
The only way for North Korea to maintain its regime and save the 
lives of its citizens is to discard its nuclear ambitions and revive 
its economy by grasping the outstretched hands of its brethren and 
the international community.  The North is only bent on holding 
direct talks with the U.S. but the Obama Administration reaffirms 
that the U.S. intends to resume talks and give aid on the 
precondition that Pyongyang give up its nuclear ambitions.  The 
U.S.-ROK alliance is solid enough to block North Korea's attempt to 
talk with only the U.S. while bypassing the ROK.  We expect that 
North Korea will respond proactively to the ROKG's proposal aimed at 
resuming inter-Korean talks and ensuring peace. 
 
 
 
SEOUL 00001316  005 OF 006 
 
 
FEATURES 
-------- 
 
DIPLOMATIC SOURCE: "WHILE CONTINUING PRESSURE ON NORTH KOREA, THE 
U.S. IS SEARCHING FOR NORTH KOREAN ENTITIES SUBJECT TO SANCTIONS" 
(Dong-a Ilbo, August 15, 2009, Page 6) 
 
By Washington Correspondent Ha Tae-won 
 
The U.S. interagency team on North Korea sanctions will visit the 
ROK, Japan, Thailand, and Singapore next week. 
 
Ambassador Philip Goldberg stood on a platform at a State Department 
briefing room on the afternoon of August 13 and made clear the 
reasons why he took the platform.  Goldberg, who leads a U.S. 
interagency task force (involving the Departments of State, Defense, 
and Treasury, the White House, and the National Security Council) 
which was established to take full charge of sanctions on North 
Korea for its nuclear and missile activities, has been carrying out 
very noticeable activities since North Korea's second nuclear test 
on May 25. 
 
"Our overall goal is to achieve denuclearization of North Korea 
through irreversible steps and to implement UN Security Council 
Resolutions 1874 and 1718," he said, adding that to achieve this, he 
and his team will be going to Singapore first early next week, then 
Bangkok, Seoul, and then Tokyo. 
 
The announcement is indicative of Washington's clear determination 
to continue its pressure on the North after the USG, separately from 
the UN Security Council Resolutions, imposed three independent 
sanctions against North Korean entities, including the Treasury 
Department's August 11 designation of Kwangson Banking Corp. as an 
additional entity subject to financial sanctions.  A diplomatic 
source noted, "The U.S. is still looking for North Korean entities 
which are subject to sanctions, and Washington has shown its clear 
willingness to ferret out any activities related to nuclear and 
missile programs." 
 
Ambassador Goldberg also unveiled a plan to visit China, which holds 
the key to the success of sanctions against North Korea.  He said, 
"We have agreed on a follow-up trip to China (after the U.S.' North 
Korea sanctions team's visit to China in early July) with our 
Chinese colleagues.  We are still working on dates.  It could happen 
as early as later this month."  Right after North Korea's nuclear 
test, the team visited China, Malaysia, Hong Kong, and Russia, and 
created a network of sanctions against the North through 
consultations with European countries in Washington and at the UN 
headquarters in New York. 
 
Through his upcoming visit to the ROK, Japan, Thailand, and 
Singapore, Ambassador Goldberg intends to have an opportunity to 
look at each nation's implementation of sanctions and to share 
information on the North's illegal activities.  Ambassador Goldberg 
mentioned, "Singapore and Thailand are key members of ASEAN. 
Thailand, at the moment, holds the presidency of the organization. 
And both countries are important maritime countries, as well as 
commercial and financial centers," indicating that substantial 
financial sanctions on the North and ways to inspect its sea cargos 
will be high on the agenda. 
 
He added, "In all of these countries, we will share thoughts, ideas, 
and our impressions on inspections of air, sea, and land cargo.  We 
will review the financial provisions of the resolutions, and we will 
share information when possible on specific cases." 
 
While explaining the outcome of his previous visit to Asian nations 
and Russia to discuss the implementation of sanctions against North 
Korea, Ambassador Goldberg remarked, "When we visited other 
countries, they were very interested in U.S. advisories, and they 
sent advisories around to their banks." 
 
(Editor's Note:  The same story was also carried by Chosun Ilbo in 
its Saturday edition.  The article reports: "Ambassador Goldberg's 
 
SEOUL 00001316  006 OF 006 
 
 
announcement drew attention, especially given its timing and format. 
 Ambassador Goldberg held the briefing shortly after an ROK employee 
at the Kaesong Industrial Complex was freed, following the release 
of the Current TV journalists, who had been detained in the North 
since March.  Before this briefing, Ambassador Goldberg's overseas 
activities were made public only through statements by the State 
Department spokesman, but on August 13, Ambassador Goldberg himself 
held the public briefing.  The briefing on that day was designed to 
prevent rosy prospects for U.S.-North Korea relations after the two 
'hostage cases' were closed.  He said during the briefing, 'There is 
a clear path for North Korea if they want to rejoin the 
denuclearization process.  Otherwise, these measures will continue.' 
 Furthermore, by announcing a plan to visit China at the end of this 
month, he stressed that there is no problem in U.S.-China 
cooperation on sanctions against the North.") 
 
 
RELAXED ROK, U.S. POLICIES TOWARD NORTH KOREA 
(Chosun Ilbo, August 17, 2009, page 3) 
 
By Reporter Lim Min-hyuk 
 
We are focusing our attention on why the ROK and the U.S. are making 
remarks to North Korea that call for relaxed conditions for resumed 
talks and aid.  Few disagree that international sanctions against 
North Korea will remain in place.  But a delicate change in 
positions of the ROK and the U.S. can be interpreted as "preparatory 
steps" toward dialogue with North Korea. 
 
In an August 15 speech to mark the 64th anniversary of Korea's 
liberation from Japanese rule, President Lee Myung-bak stated that 
Seoul will pursue a "new peace initiative" if the North shows a 
resolve to denuclearize.  It seems that Seoul and Washington are 
retreating from their demand that North Korea take substantial 
action, including making progress on the Six-Party Talks, 
international cooperation, and nuclear dismantlement. 
 
Previously, when questioned during an August 14 briefing on whether 
it won't take too long for North Korea to take all (required) 
specific actions for denuclearization, Philip Crowley, Assistant 
Secretary of State for Public Affairs, said that this could be a 
technically complicated process but does not need to be a long 
process.  Crowley added that the U.S. is willing to halt sanctions 
and resume dialogue with North Korea if there is a "political 
commitment" by the North to meet its obligations and to join in 
dialogue.  The U.S. has reiterated that it. is willing to hold 
dialogue with North Korea within the framework of the Six-Party 
Talks if the North takes concrete steps to dismantle its nuclear 
program.  But (now) the U.S. is calling for political commitment, 
not (concrete) action. 
 
Observers say that the U.S. and the ROK are in a position to give 
themselves and North Korea room to maneuver, since the U.S. and 
North have been making contact behind-the-scenes through the New 
York channel and making moves toward dialogue.  An ROKG official 
said that there is an understanding that they need to use a more 
flexible expression rather than putting too much emphasis on 
"strictness."  Another diplomatic source said that (the ROK and the 
U.S.) should allow a realistically larger exit than the (current) 
narrow exit to lure North Korea back into dialogue, while putting 
pressure on the North with international sanctions.  Against this 
backdrop, some observers say that the U.S. will dispatch a 
high-ranking delegation to the ROK, China and Japan in September to 
engage in full consultation for talks with North Korea. 
 
The ROK and the U.S. firmly share the view that North Korea's 
commitment to denuclearization should not be pursued in a reversible 
way.  In the past, North Korea repeatedly promised to seek 
denuclearization even by citing the teachings of the late Kim 
Il-sung, but reversed its position later after receiving benefits. 
 
 
 
TOKOLA