VZCZCXRO8688
OO RUEHGH
DE RUEHUL #1572/01 2740351
ZNR UUUUU ZZH
O 010351Z OCT 09
FM AMEMBASSY SEOUL
TO RUEHC/SECSTATE WASHDC IMMEDIATE 5817
RUCPDOC/USDOC WASHDC 9227
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEAIIA/CIA WASHINGTON DC//DDI/OEA//
RHHMUNA/USCINCPAC HONOLULU HI//FPA//
RUEKJCS/SECDEF WASHINGTON DC
RUEKJCS/JOINT STAFF WASHINGTON DC
RUEKDIA/DIA WASHINGTON DC//DB-Z//
RUEHMO/AMEMBASSY MOSCOW 0350
RUEHBJ/AMEMBASSY BEIJING 6720
RUEHKO/AMEMBASSY TOKYO 6790
RUEHGH/AMCONSUL SHANGHAI 1329
RUEHSH/AMCONSUL SHENYANG 5110
RUEHIN/AIT TAIPEI 4068
RUEHGP/AMEMBASSY SINGAPORE 7282
RUCNDT/USMISSION USUN NEW YORK 1575
RUEHGV/USMISSION GENEVA 2887
RUEHLO/AMEMBASSY LONDON 1965
RUEHFR/AMEMBASSY PARIS 2573

UNCLAS SECTION 01 OF 05 SEOUL 001572 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL PGOV MARR ECON KPAO KS US
SUBJECT: SEOUL - PRESS BULLETIN; October 1, 2009 
 
TOP HEADLINES 
------------- 
 
Chosun Ilbo, All TVs 
Powerful Indonesia Quake Kills 120, Thousands Trapped; 
Death Toll Expected to Climb Sharply 
 
JoongAng Ilbo 
Citizens Enraged by "Light Sentence" Given 
to Heinous Child Rapist 
 
Dong-a Ilbo, Seoul Shinmun 
President Lee Urges Political Circles to Hurry 
to Redraw Electoral and Administrative Districts 
 
Hankook Ilbo, Segye Ilbo 
President Lee: "It is Time for Korea to Take Lead in Global Issues, 
Including N. Korea's Nuclear Issue" 
 
 
Hankyoreh Shinmun 
Contradictory Remarks by Ruling Camp Officials Add to Confusion over 
Controversial Sejong City Project 
 
 
DOMESTIC DEVELOPMENTS 
------------------------------------------- 
 
President Lee Myung-bak, in a Sept. 30 special news conference at 
the Blue House, said that the ROK should present its own visions and 
perspectives regarding not only inter-Korean issues but also other 
international issues, taking a leading role. (All) 
 
Deputy Secretary of State James Steinberg told reporters yesterday 
after a meeting with First Vice Foreign Minister Kwon Jong-rak at 
the Foreign Ministry in Seoul that there is no difference of opinion 
between the ROK and the U.S. over the ROK-proposed "grand bargain" 
on North Korea's nuclear issue. He also urged North Korea to seize a 
"tremendous opportunity" and return to the Six-Party Talks. (Chosun, 
JoongAng, Dong-a, Hankook, Segye, Seoul, all TVs) 
 
The Deputy Secretary also said during an interview with JoongAng 
Ilbo that the sanctions against North Korea will remain in place 
until the North takes concrete, irreversible steps to eliminate 
nuclear weapons. (JoongAng) 
 
 
INTERNATIONAL NEWS 
------------------------------------- 
 
In what could be viewed as North Korea's first official response to 
President Lee's "grand bargain" proposal, North Korea's Korean 
Central News Agency said yesterday that the nuclear matter is a 
bilateral issue with the U.S. and that the "grand bargain" proposal 
is an attempt to meddle between the North and the U.S. (JoongAng, 
Hankook, Hankyoreh, Segye) 
 
Stephen Bosworth, the U.S. Special Representative for North Korea 
Policy, in a Sept. 28 interview hosted by the East Asia Forum, said: 
"There is no military solution in North Korea's nuclear issue," 
adding: "I will say that we are willing to restart the negotiation 
process." (JoongAng) 
 
 
MEDIA ANALYSIS 
--------------- 
 
-N. Korea 
--------- 
Most ROK media covered yesterday's press remarks by visiting Deputy 
Secretary of State James Steinberg, in which he said: "We've 
indicated that we're prepared to have direct engagement - bilateral 
 
SEOUL 00001572  002 OF 005 
 
 
engagement - with North Korea if it's in aid of bringing North Korea 
back into the Six Party Talks and recommitting to denuclearization. 
... We hope that the North Koreans take advantage of that." 
 
Deputy Secretary Steinberg was further quoted as saying during an 
interview yesterday with right-of-center JoongAng Ilbo: "The 
sanctions against North Korea will remain in place until the North 
takes concrete, irreversible steps to eliminate nuclear weapons." 
 
Most media also noted Deputy Secretary Steinberg's remarks, "There 
is absolutely no difference in our perspective (between Washington's 
'comprehensive approach' and the 'grand bargain' proposed by 
President Lee).  What we need is a comprehensive and definitive 
resolution of the nuclear question.  I think that's what President 
Lee Myung -bak was talking about, that's what we're talking about, 
so I think we are absolutely in sync on this."  Most newspapers 
carried the identical sub-headlines: "Steinberg: 'There is No 
Bilateral Difference on Grand Bargain.'" 
 
Most ROK media reported on North Korea's rejection yesterday of 
President Lee's "grand bargain" proposal on its nuclear issue, 
citing the North's Korean Central News Agency as insisting that the 
nuclear matter is a bilateral issue with the U.S. and that the 
"grand bargain" proposal is an attempt to meddle between the North 
and the U.S. 
 
Right-of-center JoongAng Ilbo quoted Stephen Bosworth, the U.S. 
Special Representative for North Korea Policy, as saying in a Sept. 
28 interview hosted by the East Asia Forum: "There is no military 
solution in North Korea's nuclear issue.  Negotiations are the way 
forward.  I will say that we are willing to restart the negotiation 
process." 
 
With regard to China's recent indication of its intention to provide 
substantial aid to North Korea, conservative Chosun Ilbo 
editorialized: "If North Korea receives massive aid from China and 
rides out its economic emergency, the North would probably continue 
to develop nuclear weapons while outwardly engaging in talks (on its 
denuclearization.) ... If China does not want this to happen, it 
should provide aid to North Korea within the framework of 
international cooperation to deter the North's nuclear 
development." 
 
 
FEATURES 
---------- 
 
STEINBERG: "WE ARE ABSOLUTELY IN SYNC ON THIS (GRAND BARGAIN)" 
(Chosun Ilbo, October 1, 2009, page 4) 
 
By Reporter Lim Min-hyuk 
 
Deputy Secretary of State James Steinberg said on September 30, 
"We've lived through the history before of partial measures and 
reversible measures and what we need is a comprehensive and 
definitive resolution.  I think we are absolutely in sync on this 
(grand bargain.)" 
 
During a press interview with reporters following his meeting with 
ROK Vice Foreign Minister Kwon Jong-rak, Steinberg said, "We've 
discussed with our partners here in Japan, Moscow, and Beijing our 
common willingness to engage with North Korea.  We're prepared to 
have direct engagement-bilateral engagement-with North Korea if it's 
in aid of bringing North Korea back into the Six-Party Talks." 
 
The deputy secretary said, "We hope that the North Koreans take 
advantage of that (opportunity for bilateral talks.)"  He added, "I 
think it's important for North Korea to make clear that it's 
prepared to engage on those terms and that, if we find that it's 
productive to pursue that direction, I think we're prepared to do 
it."  Steinberg also noted, "We are deeply committed together, along 
with the other members of the Six-Party Talks, to convincing North 
Korea that they should return to the path of diplomacy through the 
Six-Party Talks and recommit to complete and irreversible 
 
SEOUL 00001572  003 OF 005 
 
 
denuclearization." 
 
Earlier, Deputy Secretary Steinberg had a breakfast meeting with Kim 
Sung-hwan, Senior Presidential Secretary for Diplomacy and National 
Security and Wi Sung-lac, the ROK's Chief Delegate to the Six-Party 
Talks and discussed President Lee Myung-bak's "Grand Bargain" 
proposal and the timing and conditions for U.S.-North Korea 
bilateral talks. 
 
 
STEINBERG: "WE HOPE THAT THE NORTH KOREANS TAKE ADVANTAGE OF THAT 
(OPPORTUNITY FOR BILATERAL TALKS)" 
(Dong-a Ilbo, October 1, 2009, page 2: Excerpts) 
 
By Reporters Kim Young-shik and Shin Seok-ho 
 
After a meeting with ROK Vice Foreign Minister Kwon Jong-rak at the 
Foreign Ministry, Deputy Secretary of State James Steinberg said on 
September 30, "The challenge now is for the North Koreans to 
understand that there is an opportunity to return to a more 
productive path." 
 
Meanwhile, North Korea issued its first official reaction to 
President Lee Myung-bak's "Grand Bargain" proposal on September 30. 
 
The North's Korean Central News Agency said that it is absurd (for 
the U.S.) to call on the North to give up its nuclear program when 
it remains hostile to Pyongyang. 
 
 
U.S. ENVOY: "SANCTIONS WILL REMAIN IN PLACE UNTIL NORTH KOREANS 
ELIMINATE NUCLEAR WEAPONS" 
(JoongAng Ilbo, October 1, 2009, Front page) 
 
By Senior Journalist Kim Young-hie 
 
Deputy Secretary of State James Steinberg announced on September 30 
that the U.S. will continue to implement UNSC Resolution 1874 
sanctioning North Korea until the North takes concrete and 
irreversible steps to denuclearize (the Korean Peninsula.) 
Steinberg, a chief official in charge of the Obama Administration's 
North Korea policy, said that the U.S. will not even discuss easing 
sanctions before Pyongyang takes necessary steps. 
 
During an exclusive interview with JoongAng Ilbo, the deputy 
secretary, who is on a tour of three Asian countries including the 
ROK, China and Japan, said that diplomatic moves by the U.S. toward 
talks with North Korea definitely do not represent any shift in its 
position.  He said that the U.S. is strictly enforcing UNSCR 1874 
and will not back off.  Deputy Secretary Steinberg noted that the 
U.S. believes that North Korea has recently made conciliatory 
gestures toward the ROK and the U.S. because sanctions are paying 
off and North Korea realizes that its current direction is isolating 
itself and undermining its security. 
 
Deputy Secretary Steinberg said that there is no conceptual 
difference between the "grand bargain," which President Lee 
Myung-bak proposed in New York on September 16 as a new solution to 
the North Korean nuclear issue, and the Obama Administration's 
"package deal." 
 
 
 
U.S. ENVOY: "THERE WILL BE NO COMPROMISE THAT TOLERATES NORTH 
KOREA'S NUCLEAR POSSESSION" 
(JoongAng Ilbo, October 1, 2009, Page 10) 
 
By Senior Journalist Kim Young-hie 
 
An interview with U.S. Deputy Secretary of State James Steinberg 
 
Despite a very tight schedule for his seven-day trip to five Asian 
nations, U.S. Deputy Secretary of State James Steinberg did not look 
tired.  During a September 30 interview held at the conference room 
 
SEOUL 00001572  004 OF 005 
 
 
of the U.S. Embassy in Seoul, he sounded firm regarding North Korea. 
 Seemingly mindful of U.S. hard-liners' criticism that (the U.S.) is 
strung along by the North, he strongly emphasized that (the U.S.) 
has no intention of easing sanctions. 
 
¶Q.  There must have been efforts to coordinate between President Lee 
Myung-bak's "grand bargain" proposal and the Obama Administration's 
"package deal."  How much progress has been made? 
 
"They are all the same concept.  We should take a different approach 
(on the nuclear issue) than in the past, whatever words you use to 
describe that.  There is no difference about that among not only the 
ROK and the U.S. but also other Six-Party nations.  We do not want a 
kind of forward and backward movement." 
 
¶Q. Then, when President Lee put forward the grand bargain, why did 
the U.S. Department of State react coolly? 
 
"That was not an accurate response." 
 
¶Q. Did the idea of the grand bargain come out of the ROK-U.S. summit 
last June? 
 
"Yes. As President Lee said, both nations agreed that a "piecemeal" 
approach to resolving the North Korean issue step by step should not 
be the case.  The way of offering rewards to the North for 
incremental progress does not work properly." 
 
¶Q. North Korean leader Kim Jong-il expressed intent to return to 
multilateral and U.S.-North Korea talks. 
 
"So far, there have been various contacts between Chinese and North 
Korean officials by visiting each other.  We will watch whether 
North Korea sincerely intends to return to dialogue." 
 
¶Q. Do you think a breakthrough in the North Korean nuclear issue 
will be made at the upcoming ROK-China-Japan summit in Beijing? 
 
"It is up to whether North Korea is ready to make a strategic 
decision.  We are ready.  The door is widely open for the North 
Koreans to walk in.  They can rejoin the Six-Party Talks.  In that 
case, we can discuss more specific details to reach the destination. 
 Kim's strategic decision is required." 
 
¶Q. What is the strategic decision? 
 
"It is to recognize that North Korea is better off without nuclear 
weapons than with nuclear weapons.  This is the key of the strategic 
decision.  Then, a lot of things become possible." 
 
¶Q. Do you think it will be helpful to North Korea's denuclearization 
to extend the currently effective sanctions against the North by 
another three or six months? 
 
"We have made it clear that unless the North Koreans take steps 
toward denuclearization, we will not discuss withdrawing sanctions. 
Right now, what we want to talk to them about is not about 
sanctions.  We agreed with other Six-Party countries to maintain UN 
Security Council Resolution 1874.  There is no proposal to ease or 
end the current sanctions against the North." 
 
¶Q. The "two-track" approach combining both sanctions and dialogue is 
being pursued in a balanced way.  In what situation, will dialogue 
be given more weight? 
 
"We are not going to, as in the past in some cases, give sanctions 
relief for talks.  We need to take note of North Korea's recent 
moves.  They launched missiles, conducted a nuclear test, and, on 
September 3, sent the UN Security Council a letter saying that they 
successfully conducted experimental uranium enrichment.  Therefore, 
in order for the international community to lift the sanctions 
against the North, North Korea has much work to do." 
 
¶Q. Then, why did you recently veer away from additional sanctions 
 
SEOUL 00001572  005 OF 005 
 
 
toward the pursuit of dialogue? 
 
"We did not change course.  We are firmly enforcing UNSC Resolution 
1874, and we possess every means needed to do so.  Several nations 
have already stopped North Korean vessels.  Yesterday in Beijing, 
too, we discussed the implementation of UNSCR 1874.  We also talked 
about this with the Malaysian Prime Minister." 
 
¶Q. As a way to resolve the North Korean nuclear issue, do you 
consider tolerating North Korea's nuclear possession on the 
condition that it will not spread its nuclear programs? 
 
"That is one of the few questions to which I can give a simple 
answer.  The answer is 'No.' Such concern is groundless.  We want 
North Korea's irreversible and complete denuclearization." 
 
¶Q. Does the Iranian nuclear standoff have any impact on the North 
Korean nuclear issue? 
 
"It has much influence.  If we do not stand firm against the North, 
we could send the world a signal that we tacitly approve nuclear 
proliferation.  Although the North Korean issue itself is important, 
we take much interest in the meaning that (the North Korean issue) 
carries in relation to the nuclear non-proliferation regime." 
 
¶Q. Do you have a contingency plan for a "Big Bang" inside North 
Korea? 
 
"Policymakers should consider various options.  However, it is not 
appropriate to disclose the details." 
 
 
STEPHENS