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UNCLAS SECTION 01 OF 07 SEOUL 001507 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL PGOV MARR ECON KPAO KS US
SUBJECT: SEOUL - PRESS BULLETIN; September 22, 2009 
 
TOP HEADLINES 
------------- 
 
Chosun Ilbo, JoongAng Ilbo, Hankook Ilbo, 
Seoul Shinmun, All TVs 
President Lee Proposes "Grand Bargain" 
on N. Korea's Nuclear Issue 
 
Dong-a Ilbo, Hankyoreh Shinmun 
Prime Minister Nominee Remains Steadfast in Calling for Change to 
New Administrative Capital Relocation 
Project of Sejong City 
 
Segye Ilbo 
Prime Minister Nominee: "(Relocating Administrative Offices to) 
Sejong City Is Inefficient from a National Perspective" 
 
 
DOMESTIC DEVELOPMENTS 
--------------------- 
 
President Lee Myung-bak, in a Sept. 21 meeting jointly hosted by the 
Korea Society, the Asia Society and the U.S. Council on Foreign 
Relations in New York, proposed a "grand bargain" for the Six-Party 
Talks in which North Korea will dismantle the core parts of its 
nuclear program in exchange for security assurances and 
international economic aid. (All) 
 
President Lee was further quoted as stressing qualitative changes in 
the ROK-U.S. alliance, saying: "It is time for the ROK-U.S. alliance 
to contribute to world peace." (Chosun) 
 
The Justice Ministry said yesterday that it will submit an 
immigration bill next month to the National Assembly to collect 
biological records, including fingerprints, from foreigners entering 
the ROK. (JoongAng) 
 
 
INTERNATIONAL NEWS 
----------------- 
 
CIA Director Leon Panetta, in a recent interview with Bloomberg, 
said that the U.S. and North Korea "are discussing the ability to 
try to talk with one another" and that the two countries "are in a 
honeymoon situation right now." (JoongAng) 
 
There is a growing consensus within the Obama Administration that 
China has played a major role in changing North Korea and that the 
Administration should strengthen cooperation with China until the 
North's nuclear dismantlement. (JoongAng) 
 
According to Radio Free Asia (RFA), U.S. political circles are 
raising the possibility of a summit meeting between the U.S. and 
North Korea in the first half of next year. (Hankook, Segye, Seoul) 
 
 
 
MEDIA ANALYSIS 
--------------- 
 
-N. Korea 
----------- 
Most media gave top front-page play to President Lee Myung-bak's 
Sept. 21 proposal in New York for a "grand bargain" on North Korea's 
nuclear issue.  President Lee was widely quoted: "We need an 
integrated approach to fundamentally resolve the North Korean 
nuclear issue.  Through the Six-Party Talks, we need to push forward 
a 'grand bargain' to dismantle the core parts of the North's nuclear 
program, while at the same time providing security assurances and 
international economic aid." 
 
In a related development, a key Blue House official was quoted as 
explaining: "While the previous, step-by-step package deal only 
 
SEOUL 00001507  002 OF 007 
 
 
wasted time because everything went back to square one when the 
North decided to leave the talks, President Lee's 'grand bargain' is 
a 'one-shot deal' focused on giving North Korea (everything) that it 
wants (economic aid and regime security) while, at the same time, 
receiving everything that we want from North Korea (North Korea 
denuclearization.) " 
 
Conservative Chosun Ilbo observed that it was the first time 
President Lee used the term "grand bargain" in an international 
forum and that he apparently meant to provide momentum to dialogue 
between the four big powers surrounding the Korean Peninsula.  In an 
editorial, Chosun argued: "The idea of resolving the North Korean 
nuclear issue through a package deal is nothing new. ... .  In order 
to avoid repeating past failures (in negotiations with North Korea) 
the ROK and the U.S. should provide substantial aid only if there is 
proof that North Korea has dismantled its nuclear program in an 
irreversible fashion." 
 
Right-of-center JoongAng Ilbo commented in an editorial: "This 
'grand bargain' proposal is a timely concept, which we expect to 
serve as a turning point in fundamentally resolving the North Korean 
nuclear issue. ...  First of all, the ROK should come up with the 
specifics of an 'integrated approach' to make the "grand bargain" 
feasible.  It is also important to closely cooperate with China, 
Russia and Japan as well as with the U.S.    Afterwards, the ROK 
should present the grand bargain during talks with North Korea, 
whether they are bilateral or multilateral talks." 
 
Conservative Dong-a Ilbo editorialized: "The North will be deluding 
itself if it thinks that it can use bilateral dialogue with the U.S. 
or the Six-Party Talks to buy time.  There will not be endless 
opportunities for North Korea to resolve the nuclear issue 
peacefully while receiving comprehensive economic aid.  If the North 
misses this opportunity, it will inevitably face stronger 
international sanctions and will not be able to win a security 
guarantee for the Kim Jong-il regime.  Only when the North shows 
(its strong commitment toward) nuclear dismantlement through action 
can it escape international isolation and economic difficulties." 
 
 
Right-of-center JoongAng Ilbo carried an inside-page report entitled 
"U.S. Sees that China has Changed N. Korea... (The U.S.) Is Likely 
to Strengthen Cooperation with China on N. Korea."  The report 
quoted President Barack Obama as telling CNN on Sept. 20 that 
Washington's North Korea policy has been a success so far and that 
he's satisfied with the cooperation from China and Russia in 
sanctioning North Korea for its nuclear and missile tests. 
 
-Afghanistan 
------------- 
Most newspapers carried inside-page reports on a recent 66-page 
report by General McChrystal, the U.S. and NATO commander in 
Afghanistan, in which he warned that more troops are needed in the 
war-torn country within the next year or the nearly 8-year-old war 
"will likely result in failure." 
 
Conservative Chosun Ilbo wrote in the headline: "Gen. McChrystal: 
'Without More Troops U.S. Risks Failure in Afghan War;' Obama 
Lackadaisical in Sending More troops without a Clearer Strategy." 
 
 
OPINIONS/EDITORIALS 
-------------------- 
 
¶N. KOREA'S LAST OPPORTUNITY TO ABANDON NUCLEAR WEAPONS AND RECEIVE 
"GRAND BARGAIN" 
(Dong-a Ilbo, September 22, 2009, Page 35; Excerpts) 
 
President Lee Myung-bak's "grand bargain" proposal can be described 
as a "bundle of presents" for North Korea to persuade it to abandon 
its nuclear programs.  During the ROK-U.S. summit in Washington this 
past June, President Lee had proposed a "comprehensive package," 
which was different from the previous negotiation framework of 
phased compensations.  The comprehensive package was designed to 
 
SEOUL 00001507  003 OF 007 
 
 
address North Korea's denuclearization steps and the rewards that it 
will receive in return at one stroke.  While the "comprehensive 
package" was about resolving the nuclear issue and providing 
economic assistance, the "grand bargain" goes further to include a 
security assurance for the North and international economic aid. 
 
Although the North is recently continuing its charm offensive by 
signaling its willingness to accept not only bilateral dialogue with 
the U.S. but also multilateral talks, the international community is 
responding with skepticism, seeing North Korea's recent moves as a 
"repeat of its past tactic to escape difficulty by getting (the 
international community) to ease its sanctions."  The world's trust 
in North Korea is almost at rock bottom.  So far, North Korea has 
gained what it wanted by cycling through a pattern of provocation, 
negotiation and deal-breaking with other countries.  The 
international community is now trying to avoid being deceived by 
this tactic again. 
 
The North will be deluding itself if it thinks that it can use 
bilateral dialogue with the U.S. or the Six-Party Talks to buy time. 
 There will not be endless opportunities for North Korea to resolve 
the nuclear issue peacefully while receiving comprehensive economic 
aid.  If the North misses this opportunity, it will inevitably face 
stronger international sanctions and will not be able to win a 
security guarantee for the Kim Jong-il regime.  Only when the North 
shows (its strong commitment toward) nuclear dismantlement through 
action can it escape international isolation and economic 
difficulties. 
 
 
ROK, U.S. SHOULD WORK OUT WAYS TO AVOID REPEATING PAST FAILURES IN 
NEGOTIATIONS WITH N. KOREA 
(Chosun Ilbo, September 22, 2009, Page 39) 
 
In a speech in New York on Monday, President Lee Myung-bak said, 
"Now is the time to seek a grand bargain or package settlement. 
Through the Six-Party Talks, North Korea should first dismantle the 
key elements of its nuclear program and then we will provide 
security guarantees and international assistance," Lee said.  He 
called for the Five Parties (U.S., China, Japan, Russia and the ROK) 
to develop a comprehensive approach to address the North Korea 
nuclear issue. 
 
Previously, U.S. Secretary of State Hillary Clinton said Washington 
was willing to offer North Korea "military and political guarantees" 
and economic incentives if it agrees to dismantle its nuclear 
program.  The comments indicate that South Korea and the United 
States have agreed to offer security guarantees and economic support 
in exchange for nuclear dismantlement. 
 
The idea of resolving the North Korean nuclear issue through a 
package deal is nothing new.  In October 1994, a year after the 
first North Korean nuclear crisis flared up, tensions were reduced 
by the Geneva accords, in which the North was promised a light-water 
reactor as well as food and heavy oil shipments if it froze the 
Yonbyon nuclear facility.  But this lowered tensions only 
temporarily, while the source of the problem remained, only to 
resurface again later.  North Korea's overtures since July to seek 
talks with South Korea and the U.S., may well be based on the 
judgment that it can carry on with the same strategy while holding 
on to its nuclear weapons program. 
 
South Korea cannot sit by and watch while North Korea proposes talks 
and the U.S. responds to the offer.  In order to avoid repeating 
past failures (in negotiations with North Korea,) the ROK and the 
U.S. should provide substantial aid only if there is proof that 
North Korea has dismantled its nuclear program in an irreversible 
fashion. What are the chances of North Korea scrapping its nuclear 
weapons program as a result of negotiations?  The government must 
have no illusions and take a cold, hard look at the reality of the 
situation. 
 
(This is a translation provided by the newspaper, and it is 
identical to the Korean version.) 
 
SEOUL 00001507  004 OF 007 
 
 
 
 
PRESIDENT LEE'S 'GRAND BARGAIN' PROPOSAL REVEALS DISCREPANCIES IN 
HIS "POLICY OF DENUCLEARIZATION AND OPENNESS" 
(Hankyoreh Shinmun, September 22, 2009, Page 31) 
 
During his visit to the U.S., President Lee Myung-bak proposed a 
package agreement on the North Korean nuclear issue.  The concept of 
nuclear diplomacy that he proposed appears to signal the beginnings 
of a move towards dialogue in order to resolve the nuclear issue. 
How effective this proposal will be is in doubt, however, as it does 
not show any real understanding of the problems of the existing 
North Korea policy. 
 
The core of President Lee's proposal is a package agreement in which 
North Korea is asked to abandon core parts of its nuclear program 
through the Six-Party Talks in exchange for a definite security 
guarantee and an earnest commitment on international assistance. 
This proposal represents both a substantial advance after North 
Korea's initial steps towards total denuclearization, and also 
declares an intention to provide more incentives.  One can glimpse 
signs that there has been some consideration prior to the start of 
nuclear discussions on how to present a specific proposal.   It also 
conveys the sense of encouraging the U.S. not to accede too easily 
in its upcoming dialogue with North Korea. 
 
The current proposal remains in line with President Lee's Vision 
3000: Denuclearization and Openness Plan, in which large-scale 
assistance is promised to North Korea on the condition that it first 
abandons its nuclear program.  The proposal therefore inherits all 
of that policy's problem areas, which have already been revealed all 
too clearly.  First and foremost, the section on "abandoning core 
parts of the North Korean nuclear program" is something that can 
only be accomplished after considerable progress is made in 
negotiations, yet there is nothing about the process leading up to 
it.  In this regard, this proposal can be seen as a retreat when 
compared to President Lee's Independence Day celebratory address, 
where he said, "If North Korea makes the determination to abandon 
its nuclear program, I will push forward with a new vision of 
peace."  Realistically, the U.S. and North Korea are the ones 
leading nuclear discussions.  It will be impossible to gain the 
cooperation of the countries involved if the South Korean government 
merely calls for prior denuclearization without securing any 
leverage for negotiations.  It is also inappropriate for it to be 
seen continuing to fixate on five-party discussions, a transformed 
version of the five-party talks framework. 
 
Another major problem with the proposal is how it conveys the sense 
that inter-Korean relations are subordinate to the nuclear issue. 
President Lee said, "Even if we cooperate with and hold dialogue 
with North Korea in the future, resolution on the nuclear issue will 
serve as one of the main items on the agenda."  It is in itself 
contradictory to declare an intention to discuss the nuclear issue 
with North Korea without making any basic efforts to thaw 
inter-Korean relations by resuming tourism efforts at Mt. Kumkang 
and Kaesong or by providing humanitarian assistance.  Such an 
approach will prevent the formation of the "virtuous circle of 
inter-Korean relations and resolution to the nuclear issue" that the 
government has been emphasizing. 
 
The problem with a policy of demanding prior denuclearization is not 
that apparent in a situation where pressure is being applied on 
North Korea, but it can easily turn into a hindrance to 
negotiations.  Unless the South Korean government is more assertive 
in its interactions with the other countries involved, including 
North Korea and China, by changing its "denuclearization and 
openness" policy and making headway in inter-Korean relations, 
packet agreement plans like the current one will remain 
unrealistic. 
 
(This is a translation provided by the newspaper, and it is 
identical to the Korean version.) 
 
 
 
SEOUL 00001507  005 OF 007 
 
 
WELCOMING PRESIDENT LEE'S 'GRAND BARGAIN' ON N. KOREA'S NUCLEAR 
ISSUE 
(JoongAng Ilbo, September 22, 2009, page 46) 
 
President Lee Myung-bak, who is on a visit to New York, proposed a 
"grand bargain" resolution of North Korean nuclear issue.  In a 
September 21 speech jointly sponsored by (the Korea Society, the 
Asia Society) and the U.S. Council on Foreign Relations, President 
Lee proposed a comprehensive deal in which North Korea dismantles 
the core parts of its nuclear program in exchange for security 
assurances and international economic aid.  This 'grand bargain' 
proposal is a timely concept, which we expect to serve as a turning 
point in fundamentally resolving the North Korean nuclear issue. 
 
As President Lee said, in the last 20 years, the North's nuclear 
issues have repeated (a pattern of) dialogue and tension, progress 
and setbacks, as well as stalemates.  We should break the past 
pattern, in which we rewarded North Korea for its agreement on a 
nuclear freeze, but the North broke its promise and everything went 
back to square one.  U.S. President Barack Obama pledged not to 
engage in step-by-step negotiations because he is well aware that 
the U.S. has been deceived by North Korea's "salami tactics," in 
which Pyongyang slices the process of nuclear abandonment as thinly 
as possible and then requires rewards after each sliced step in 
order to maximize its gains. 
 
Only one solution will work.  The ROK should enter into a "one-shot 
deal" for the most fundamental and core parts.  For their part, 
North Korea, which proclaimed that it developed its nuclear program 
due to the U.S.'s antagonistic policy, would gain security 
assurances and economic aid, while the other Six-Party countries 
pursue North Korea's complete nuclear dismantlement.  President Lee 
explained this idea to President Obama during the June ROK-U.S. 
summit and raised the need to hold consultations involving the five 
countries (of the Six Party Talks) excluding North Korea.  President 
Lee believed that the five countries need to specifically discuss 
action plans to get North Korea to give up its nuclear ambition. 
There is no other alternative to fundamentally resolve the North 
Korean nuclear issue. 
 
There will be a bumpy road ahead for the "grand bargain."  North 
Korea's nuclear dismantlement means dismantling existing nuclear 
weapons and materials in a verifiable way and dismantling all 
nuclear facilities including uranium enrichment facilities in an 
irreversible way.  This (grand bargain) will merely end up being an 
empty vision, without Kim Jong-il's determination.  Kim Jong-il 
should consider the best way for North Korea to obtain a security 
guarantee and face the realities of (North Korea's situation) since 
he is wrestling with a succession issue due to his ill health.  The 
North cannot achieve its goal of becoming prosperous and powerful if 
it insists on being recognized as a nuclear state.  North Korea will 
not have any future if it misses this opportunity.  As President Lee 
said, no countries in the world will antagonize North Korea if it 
pledges to discard its nuclear weapons program and come forward to 
join with the international community. 
 
First of all, the ROK should come up with the specifics of an 
'integrated approach' to make the "grand bargain" feasible.  It is 
also important to closely cooperate with China, Russia and Japan as 
well as with the U.S.    Afterwards, the ROK should present the 
grand bargain during talks with North Korea, whether they are 
bilateral or multilateral talks.  If this is the only, even if not 
easy, way to settle the North Korean nuclear issue, we should take 
active action to deliver on this vision. 
 
 
FEATURES 
-------- 
 
PRESIDENT PROPOSES 'GRAND BARGAIN' TO DEAL WITH NORTH 
(JoongAng Daily, September 22, 2009, Front Page) 
 
By Ser Myo-ja 
 
 
SEOUL 00001507  006 OF 007 
 
 
Lee says past incremental attempts were easy to sidestep 
 
President Lee Myung-bak proposed yesterday a "grand bargain" for the 
Six-Party Talks in which North Korea will swap dismantlement of core 
parts of its nuclear arms program in exchange for security 
assurances and international economic aid. 
 
As a part of his trip to the United States this week, President Lee 
is scheduled to attend a luncheon jointly hosted by the U.S. Council 
on Foreign Relations, the Korea Society and the Asia Society on 
Monday, New York time.  In a speech prepared for the event, Lee said 
it is time to break the pattern of the past in which North Korea was 
rewarded for bad behavior.  To put an end to the nuclear crisis on 
the Korean Peninsula, Lee said a grand bargain must be pushed 
forward by Seoul, Washington, Beijing, Tokyo and Moscow. 
 
The Korean-language text of Lee's address was made available in 
advance of his actual speech. 
 
Lee's remarks were also to be made at a sensitive time.  According 
to the Blue House, Lee will hold separate bilateral meetings with 
Chinese President Hu Jintao and Japanese Prime Minister Yukio 
Hatoyama on Wednesday.  The proposal of a grand bargain also came 
days after North Korean leader Kim Jong-il expressed his willingness 
to discuss his country's nuclear arms programs in both bilateral and 
multilateral talks. 
 
"In order to unite the two Koreas, we must first achieve 
denuclearization of the Korean Peninsula," Lee said according to the 
text.  "To this end, the North must give up its nuclear arms 
programs." 
 
The South Korean president, however, said no signs have appeared 
that Pyongyang is willing to do so. 
 
"Until now, the North's nuclear issues have repeated (a pattern of) 
dialogue and tension, progress and setbacks, as well as stalemates," 
Lee said.  "We must break this pattern from the past.  Leaving aside 
the fundamental issue of North Korea's complete nuclear 
dismantlement, we had compromised and rewarded the North for a 
nuclear freeze.  The North, then, broke its promise and the 
situation went back to square one.  We must no longer repeat the 
precedents of the past 20 years." 
 
Lee said Seoul, Washington, Tokyo, Beijing and Moscow need 
five-nation consultations in order to clearly agree on the final 
route of Pyongyang's nuclear abandonment and create an action plan 
to achieve the goal.  The South Korean president said he had already 
made such a proposal to his U.S. counterpart, Barack Obama, when 
they met in Washington for a bilateral summit in June. 
 
"We need an integrated approach to fundamentally resolve the North 
Korea nuclear issue," Lee said.  "Through the Six-Party Talks, we 
need to push forward a 'grand bargain' to dismantle the core parts 
of the North's nuclear program, while at the same time providing 
security assurances and international economic aid." 
 
A senior Blue House official explained that Lee's proposal seeks to 
seal an overall deal because past approaches have proven 
inefficient.  "While the previous, step--by-step package deal only 
wasted time because everything went back to square one when the 
North decided to leave the talks," the presidential aide said,  "Lee 
is proposing that negotiations from now on must focus on 
irreversible nuclear dismantlement.  Immediately after the deal is 
concluded, the North and the five parties must act simultaneously." 
 
 
The official also said the previous plan of a "comprehensive package 
deal" was more focused on what to give to the North, while Lee's 
proposal of a "grand bargain" is based on a concept of reciprocity. 
"The grand bargain is about giving North Korea (everything) that it 
wants (economic aid and regime security) while, at the same time, 
receiving everything that we want from North Korea (North Korea 
denuclearization.) 
 
SEOUL 00001507  007 OF 007 
 
 
 
Another senior official said that Lee is considering substantive 
measures on dismantling core parts of the North's nuclear programs. 
"Moving used nuclear fuel rods, which are the sources of 
weapons-grade plutonium, outside North Korea under the monitoring of 
the International Atomic Energy Agency, or destroying core parts of 
the nuclear reactor are possible methods of dismantlement," he said. 
 "Of course, all nuclear materials and nuclear weapons that have 
already been built must be dismantled." 
 
"Five countries of the Six-Party Talks (with the exception of the 
North) have reached a consensus on the overall deal, and we are 
currently discussing the specifics of the negotiations with the 
North," he added. 
 
Reiterating his August promise for economic aid to the North in 
return for its decision to give up nuclear arms, Lee said North 
Korea must not feel such a process is a threat to its regime. 
 
"By giving up nuclear programs, the North will be able to form new 
relationships with the United States and the international 
community, and that will be the only path for the North's survival 
and development," he said. 
 
In asking China to play a larger role in persuading the North, Lee 
said that South Korea will also increase its efforts, noting that 
the nuclear issue will always be addressed at all inter-Korean 
talks.  Lee said Washington and Seoul will act in unison to deal 
with the matter, while South Korea will continue to implement UN 
sanctions on the North to punish its nuclear development and 
proliferation attempts. 
 
"This is not a crisis, but an opportunity for North Korea," Lee 
said.  "North Korea must not let this opportunity - perhaps its last 
- to slip away."  By making public his proposal of the "grand 
bargain," Lee appears to be bidding farewell to existing strategies 
of resolving the nuclear crisis step by step.  Until now, North 
Korea has repeated brinkmanship and "salami tactics," in which 
Pyongyang slices the process of nuclear abandonment as thinly as 
possible and then requires rewards after each sliced step in order 
to maximize its gains while delaying the end result. 
 
"The 1994 Geneva Agreement between the United States and the North 
for a nuclear freeze has already been broken, and enormous expenses 
were wasted for the light-water reactor construction and supply of 
heavy fuels," a senior Blue House official said.  "The September 19, 
2005 agreement of the Six-Party Talks also envisioned a step-by-step 
approach, but it has also proven ineffective because the North still 
conducted a nuclear test.  "While past negotiations dealt with the 
easiest and lightest issues first, President Lee is proposing to 
settle everything at once," the official said. 
 
The latest proposal will also change Lee's North Korea policy.  Lee 
had promised assistance to boost the North's per capita income to 
$3,000 over the next decade in return for the North's decision to 
give up its nuclear programs.  In the new proposal, dismantlement is 
no longer a precondition, but a card Pyongyang can trade for 
economic aid and security. 
 
 
STEPHENS