LATEST REPORT
Tuesday, July 27, 2004

I. United States

1. Six Party Talks
2. US - DPRK Nuclear Talks
3. DPRK on US NK Human Rights Act
4. DPRK on US Relations
5. DPRK Defectors
6. ROK on DPRK Defectors
7. DPRK on US Troops
8. Inter - Korean Relations
9. Japan, Russia on DPRK Nuclear Issue
10. DPRK - Japanese Relations
11. Japan on DPRK Abductees
12. Abductee Reunion 13. US - ROK Relations
14. US - ROK Alliance
15. UN - ROK Relations
16. UN on Disarmament and Nonproliferation
17. Japan Naval Drill
18. Sino - US Relations
19. Sino - US Customs Incident
20. PRC Economy
21. PRC Foreign Investment in Infrastructure
22. PRC Foreign Investment in Agriculture
23. PRC Internet Access
24. PRC Internet Content
25. PRC Internet Censorship
26. PRC Media Censorship

1. Six Party Talks

Agence France-Presse ("SIX-WAY TALKS ON NORTH KOREA'S NUCLEAR DRIVE DUE NEXT MONTH: JAPAN PRESS", 2004-07-25) reported that Six-nation talks on the DPRK's nuclear weapons program are likely to be held next month to discuss US and DPRK proposals tabled at a meeting in June, a report said Sunday. The working-level talks in August would be followed by senior-level talks, the business daily Nihon Keizai Shimbun said.

2. US - DPRK Nuclear Talks

Yonhap ("N. KOREA SUGGESTS U.S. VISIT FOR NUKE TALKS ", 2004-07-27) reported that the DPRK has proposed to the US that it send a delegation to explain its overtures for solving a prolonged row over its nuclear ambitions, a Japanese news agency reported Tuesday. Washington, however, has rejected the proposal out of concern of playing into the hands of the DPRK demanding rewards for a nuclear freeze, Kyodo News Service reported, citing unnamed DPRK and U.S. sources.

3. DPRK on US NK Human Rights Act

Chosun Ilbo ("N. KOREA SLAMS NK HUMAN RIGHTS ACT, HINTS IT MIGHT STOP TALKS ", 2004-07-27) reported that in connection with the passage of the North Korea human rights bill at the U.S House of Representatives, a spokesperson for the DPRK Foreign Ministry said during an interview with the official Korea Central News Agency that, "With the U.S. continuing its political provocations using human rights as an excuse, is there a need for us to continue with the six-party talks?" The spokesperson said, "Some people fantasize that every problem would be resolved if the nuclear issue is settled. This is nothing more than a dream unless the U.S. changes its strategies to control the world. We firmly believe in strengthening our self-defensive physical deterrent to cope with antagonistic U.S. policies." The spokesperson denounced the DPRK human rights bill, saying the bill financially supports the overthrow of the DPRK regime and forces neighboring countries to participate in subverting it.

4. DPRK on US Relations

Reuters ("N.KOREA BERATES 'HOSTILE' U.S. AS REFUGEES REACH SOUTH", 2004-07-27) reported that the DPRK issued multiple propaganda attacks on the US Tuesday, demanding Washington remove its troops from the ROK and saying U.S. human rights policies raised doubts about nuclear crisis talks. The DPRK's state media hurled its latest barrage of invective at the US on the day more than 200 DPRK refugees arrived in the ROK from Southeast Asia in the largest single batch to arrive from the DPRK. "Now that the U.S. makes ceaseless political provocations against the DPRK with such bitter antipathy and hostility toward its political system, the DPRK is compelled to ponder over whether there is any need to continue dialogue with the U.S. for the settlement of the nuclear issue at the moment," said a statement from the DPRK Foreign Ministry.

5. DPRK Defectors

The Associated Press ("REPORT: 200 N. KOREANS ARRIVE IN S. KOREA ", 2004-07-27) reported that about 200 DPRK defectors, the largest group ever to reach the ROK, arrived in the capital on Tuesday, to be followed soon by an even larger group, according to a news report. A trickle of defectors to the ROK has grown into a steady stream in recent years as more DPRK citizens flee hunger and repression in their country, mostly fleeing across its long border with the PRC before heading to other countries. "I think it is difficult to interpret the latest event as a possible beginning of mass defection," said Koh Yu-hwan, a DPRK expert in Seoul.

6. ROK on DPRK Defectors

Yonhap ("N KOREAN DEFECTORS TO GO THROUGH LENGTHY QUESTIONING", 2004-07-27) reported that DPRK defectors are expected to go through a month of questioning by debriefing teams from several government agencies, including the National Intelligence Service, before being sent to resettlement centers. Upon their arrival, the approximately 200 DPRK defectors were taken to a training institute of a local bank south of Seoul for temporary accommodation and questioning. The investigations are to focus on their backgrounds and the motives for their defection, according to officials.

7. DPRK on US Troops

Reuters ("N.KOREA WRITES ANNAN, DEMANDS U.S. TROOP PULLOUT ", 2004-07-26) reported that the DPRK urged the United Nations Tuesday to dissolve the U.N. Command on the tense peninsula and press for the withdrawal of U.S. troops based in the ROK. In a rare letter to U.N. Secretary General Kofi Annan, the DPRK's representative at the Korean War truce village called on the United Nations to dissolve the 50-year-old U.N. Command. "It is our view that a war in Korea is almost unavoidable as long as the U.S. hostile policy toward the DPRK goes on," said the 1,100-word letter, which the official KCNA news agency said was written by Colonel-General Ri Chan-bok. Ri's letter reiterated DPRK war threats and demands for a U.S. pullout and voiced alarm at recent American moves to upgrade military readiness while cutting forces.

8. Inter - Korean Relations

Yonhap ("PRESIDENT ROH ORDERS HIKE IN STATE MONEY FOR INTER-KOREAN FUND ", 2004-07-27) reported that President Roh Moo-hyun instructed his administration Tuesday to increase state contribution to a fund reserved for inter-Korean cooperation, an official from the presidential office of Cheong Wa Dae said. "The Inter-Korean Cooperation Fund is important for promoting relations between the two Koreas in the era of Northeast Asia," Roh was quoted as telling a meeting of an advisory panel.

9. Japan, Russia on DPRK Nuclear Issue

ITAR-TASS news agency ("OFFICIAL SAYS N KOREA DENUCLEARIZATION

10. DPRK - Japanese Relations

Chosun Ilbo ("JAPAN, N.K. TO HOLD WORKING-LEVEL TALKS ON ABDUCTION", 2004-07-27) reported that Japan and the DPRK are coordinating a working-level meeting around the 10th of next month according to the Japanese media, to discuss the issue of 10 missing Japanese citizens who Tokyo claims were abducted by the DPRK, decades ago. The Mainichi newspaper is quoting multiple government sources to report that the two countries are pursuing a five-day meeting in August to negotiate details over Pyongyang's promised reinvestigation into the 10 missing Japanese. Japan is also expected to urge the DPRK to hand over the surviving members of the Yodo Group, a radical Japanese terror gang who hijacked a Japanese domestic flight and forced it to fly to Pyongyang more than 30 years ago in 1971.

11. Japan on DPRK Abductees

Kyodo News ("JAPAN MAY PROBE FATES OF 10 MISSING ABDUCTEES ON ITS OWN ", 2004-07-27) reported that Japan may look into the fates of 10 missing citizens whom it believes were abducted by the DPRK by sending a fact-finding team to the country if it finds Pyongyang's investigation unsatisfactory, Chief Cabinet Secretary Hiroyuki Hosoda said Tuesday. 'We need to examine the results to be reported in any case,' Hosoda, the top government spokesman, said in a press conference, adding that here is a 'high possibility' that such a mission will be necessary. 'The issue of the 10 people will be settled if all the 10 people repatriate, but if the other side presents results other than that, we need to advance discussions on all unresolved issues,' he said. Prime Minister Junichiro Koizumi later told reporters at his office, 'It is part of the negotiations in which we have sought a clear investigation into the missing people. We are demanding a sincere response.'

12. Abductee Reunion The Los Angeles Times ("ALLEGED DESERTER SAYS HE EXPECTS A COURT-MARTIAL", ) reported that in a letter scrawled from his Tokyo hospital bed last week, alleged Army deserter Charles Robert Jenkins told an American relative that he expected to face a court-martial over charges he defected to the DPRK in 1965. "I would like to see my family before I die," Jenkins wrote his nephew, James Hyman, in a note dated July 23. "Tell everyone I said hello and if I make it through the court marshal I will see you all." It was the first indication of how the 64-year-old Jenkins regards his legal options since he left the DPRK on July 9 after almost 40 years behind its sealed borders. Since then, there has been speculation about whether the Pentagon would press its legal right to have the ex-GI handed over for court-martial or would strike an agreement that would allow him to remain in Japan with his Japanese wife and two daughters.

13. US - ROK Relations

Yonhap ("BUSH EXPRESSES HOPE FOR TIGHTENING OF U.S.-SOUTH KOREA ALLIANCE ", 2004-07-27) reported that U.S. President George W. Bush said recently that he hopes his government will be able to build the ROK-U.S. alliance into one of the most successful alliances in the world. Bush expressed the hope in a personal letter to President Roh Moo-hyun delivered by U.S. National Security Adviser Condoleezza Rice in early July, according to National Security Adviser Kwon Chin-ho.

14. US - ROK Alliance

Donga ilbo ("U.S. DEMANDS RAISE IN DEFENSE EXPENSES SHARED DESPITE REDUCTION IN USFK ", 2004-07-27) reported that it has been revealed that despite the reduction of the U.S. Forces in Korea, the U.S. demanded a greater than 8.8 percent increase from this year's share of defense expenses for next year's expenses. An official from the Ministry of Foreign Affairs and Trade said on July 27: "The U.S. has requested to extend the payment program in which the share of ROK-U.S. defense expenses rises by 8.8 percent annually from the previous year, which was applied from 2002 to 2004, for another year at the negotiation talks for ROK-U.S. share of defense expenses last week." However, Korea views Korea's share should decrease because of the reduction of the U.S.F.K.

15. UN - ROK Relations

Yonhap ("HEAD OF UN FOOD ORGANIZATION VISITS SOUTH KOREA", 2004-07-27) reported that Director-General Jacques Diouf of the Food and Agriculture Organization of the United Nations (FAO) arrived in Seoul Tuesday 27 July as part of a swing through Northeast Asia, the Foreign Ministry said. During his three-day stay, Diouf will meet Foreign Minister Ban Ki-moon and Minister of Agriculture and Forestry Huh Sang-man before visiting the Rural Development Administration in Suwon, some 50 km south of Seoul. The top FAO official, making his third visit to ROK, will discuss ways to enhance cooperation between Seoul and the UN body on agricultural issues, the Foreign Ministry said. Diouf, a native of Senegal, is also scheduled to visit the DPRK on 4-6 August as part of his Northeast Asian trip. He will fly there from the PRC, his next stop in the region.

16. UN on Disarmament and Nonproliferation

The Associated Press ("UN OFFICIAL URGES NUCLEAR POWERS TO FOCUS ON DISARMAMENT ", 2004-07-26) reported that a senior U.N. official urged countries possessing nuclear weapons to focus on disarmament, not just nonproliferation, at the opening of a security conference Monday in Japan. "Any position focusing on nonproliferation without working seriously on disarmament lacks credibility," U.N. Under-Secretary-General on Disarmament Affairs Nobuyasu Abe told the 16th U.N. Conference on Disarmament Issues in northern Sapporo city. Abe said that while countries were locked in a stalemate over how to tackle proliferation and disarmament, the threat of nuclear and other weapons of mass destruction falling into the hands of terrorists was growing.

17. Japan Naval Drill

Jiji Press Ticker Service ("JAPAN TO HOST JOINT NAVAL DRILL AGAINST WMD PROLIFERATION ", 2004-07-27) reported that Japan plans to host a joint maritime training exercise in waters near the nation as part of international efforts to prevent the proliferation of weapons of mass destruction, government sources said Monday. Tokyo will ask for participation by the US, Canada, Russia and other countries supporting the Proliferation Security Initiative, the sources said. The joint drill, scheduled as early as for late October, is intended to prepare for possible inspections of ships in the Sea of Japan, the East China Sea and the Strait of Malacca, the sources said. This will be the first PSI drill in Asia. PSI exercises have so far been conducted in waters near Australia and Spain as well as in the Mediterranean Sea.

18. Sino - US Relations

Washington Post ("CHINA, TAIWAN AND U.S. DISPLAY MILITARY MIGHT", 2004-07-26) reported that about 18,000 PRC troops using their country's most advanced weapons systems last week rehearsed coordinated air, sea and ground attacks on Dongshan, an island in the South China Sea that resembles Taiwan in terrain and weather. At about the same time, Taiwanese pilots 185 miles northeast landed advanced Mirage 2000-5 fighters on a blocked-off freeway to practice what they would do if their air bases were hit during a PRC missile assault on the disputed territory. Providing its own martial background music, the US Navy staged a global readiness drill with seven carrier groups around the world to show that the US could muster overwhelming force anywhere, including Taiwan, despite the war in Iraq. The three governments involved, the PRC, the US and Taiwan, all insisted their military maneuvers were not timed to match those held by the others and should not contribute to the tension surrounding Taiwan. But their officials acknowledged that one purpose of holding such exercises was to demonstrate military resolve and ability to potential foes as well as friends.

19. Sino - US Customs Incident

Agence France-Presse ("US ASSURES THOROUGH PROBE INTO CHINESE BEATING INCIDENT ", 2004-07-27) reported that the US will conduct a thorough probe over an incident in which a PRC businesswoman was allegedly severely beaten by a US border inspection guard near Niagara Falls, the State Department said. We look forward to getting to the bottom of it as soon as possible," the department's deputy spokesman Adam Ereli said after Secretary of State Colin Powell spoke on the phone Sunday with his PRC counterpart, Li Zhaoxing, about the incident last week. Ereli said the Department of Homeland Security was investigating the case of 37-year-old Zhao Yan, who was allegedly pepper-sprayed and beaten up on Wednesday.

20. PRC Economy

The Associated Press ("CHINA PROMISES LEVEL FIELD FOR BUSINESSES", 2004-07-27) reported that the PRC's leaders are promising to create a level playing field for private businesses by granting them the same "preferential treatment" given to state firms and repealing restrictive laws, state media said Tuesday. Premier Wen Jiabao, the PRC's top economic official, told an economic forum in a statement that the government would "encourage, support and guide" private companies, newspapers and the Xinhua News Agency reported. Wen's statement was one of the most explicit promises yet by the PRC to treat entrepreneurs equally with state companies that dominate the economy. It came four months after the ruling party amended the PRC's constitution in March to protect private property rights for the first time.

21. PRC Foreign Investment in Infrastructure

The Associated Press ("REPORTS: CHINA'S RAILWAYS TO OK INVESTMENT", 2004-07-26) reported that the PRC's massive railways, an icon of central planning, will start allowing private investment, ending the state's monopoly in the industry to help finance its expansion, official media reported. The state would retain control of the biggest trunk routes, but allow outside investment in branch lines, the state-run newspaper China Daily reported over the weekend. It cited a Railways Ministry official but gave only his surname, Li, and no title. The changes are part of broad reforms for the rail, posts and road transport systems aimed at introducing greater competition and efficiency into those industries.

22. PRC Foreign Investment in Agriculture

The Associated Press ("CHINA PLEDGES TO OPEN UP ITS FARM MARKET", 2004-07-26) reported that the PRC will lift restrictions on foreign investment in markets that sell vegetables and other farm produce, hoping to upgrade stores and outdoor markets plagued by low-quality products and inefficiency, state media said Monday. The changes were outlined in a report by the State Council, the PRC's cabinet. The report pledges to end joint venture requirements for investment in agricultural product outlets, the state-run China Daily newspaper said. "There will be no limits on the location, shareholding and capital requirements for foreign companies opening wholesale markets and farm produce retail outlets," the newspaper quoted Commerce Ministry official Xu Ming as saying.

23. PRC Internet Access

The Associated Press ("CHINA'S INTERNET POPULATION GROWS 28 PCT.", 2004-07-26) reported that the PRC's Internet population grew 28 percent over the past year to 87 million, while use of broadband and online commerce is soaring, according to a government report. The PRC now has 31 million subscribers to broadband high-speed lines, an increase of 79 percent over the past six months, the China Internet Network Information Center said on its Web site. The country aggressively promotes Internet use for business and education, despite an average annual income of less than $1,000 per person.

24. PRC Internet Content

The Associated Press ("CHINA SHUTS DOWN 700 PORNO WEB SITES", 2004-07-27) reported that PRC authorities have shut down 700 pornographic Web sites in less than two weeks as part of a massive campaign to clean up the Internet, the official Xinhua News Agency said Tuesday. Citing figures from the Ministry of Public Security, Xinhua said 224 suspects have been detained since July 16, when the crackdown began. No details were given on those cases. Wu Mingshan, an official in charge of the campaign, said "a clean online environment" has been established in major cities like Beijing and Shanghai, as well as Liaoning province in the northeast and Guangdong in the south, Xinhua said. Other future targets include online criminal activities like fraud and gambling, he said.

25. PRC Internet Censorship

Agence France-Presse ("RIGHTS GROUP ACCUSES YAHOO, GOOGLE OF AIDING CHINESE INTERNET CENSORSHIP", 2004-07-27) reported that an international press freedom group has lashed out at Yahoo and Google -- the two most popular Internet search engines -- for allegedly cooperating with the PRC government to crackdown on web access. The Paris-based Reporters Without Borders (RSF) said it, "deplores the irresponsible policies of United States Internet firms Yahoo! and Google in bowing directly and indirectly to Chinese government demands for censorship." The rights watchdog claimed Yahoo had been censoring its Chinese-language search-engine for several years and rival firm Google, which recently took a share in Baidu, a PRC search-engine that filters a user's findings, seemed ready to go the same way. In their efforts to conquer the PRC market, the two firms are "making compromises that directly threaten freedom of expression," it said in a statement.

26. PRC Media Censorship

Agence France-Presse ("WORLD PRESS WATCHDOG CONDEMNS ANTI-GRAFT GROUP RAIDS ON HONG KONG NEWSROOMS", 2004-07-27) reported that an international press watchdog has condemned Hong Kong's anti-corruption officials' weekend raids on several newspapers, calling the action "unnecessary and heavy-handed". "ICAC used unnecessary and heavy-handed tactics that seem designed to harass and intimidate," said Ann Cooper, executive director of New York-based Committee to Protect Journalists. "Hong Kong authorities must conduct a thorough investigation into the raids and ensure that journalists are able to work without external pressure or interference," she said in a statement. The Independent Commission Against Corruption (ICAC) swooped on at least six newspapers across Hong Kong on Saturday over their identifying a woman who, in court proceedings, claimed she was being held by the commission against her will.

II. ROK

27. ROK Jerusalem 2004 Procession

Chosun Ilbo ("DESPITE WARNINGS, 600 KOREAN CHRISTIANS MARCH ON THE HOLY LAND", 2004-07-27) reported that It has been revealed that 600 Christians, not the 100 as initially believed, left ROK to attend "Jerusalem 2004," a procession through the Israeli city of Jerusalem and parts of Palestine from August 7 to 12. Choi Paul, head of the missionary organization InterCP and one of the organizers of the event, said that as of Tuesday, 600 staff members and Christians left ROK for the procession. A total of 2,300 people would participate in the event and the rest of the participants would successively depart for Jerusalem. On August 4 and 5 when the procession is near at hand, about 900 people would leave for Israel aboard chartered planes or scheduled flights, Choi said. Choi said that in considering concerns over terrorist attacks conveyed by the Ministry of Foreign Affairs and Trade, the participants would mainly hold the event indoors and march 1.5 kilometers, far shorter than the originally planned five kilometers. "With the cooperation of the Israeli and Palestinian governments, we take the safety of the participants into the utmost consideration," Choi said.

28. ROK Cyberattacks

Chosun Ilbo ("CHINA SAYS IT HAS NOTHING TO DO WITH HACKING ALLEGATION", 2004-07-26) reported that The Embassy of PRC in ROK on July 26 made an official response to an allegation that a hacking group based in ROK broke into ROK government agencies' computer networks in its systematic attempt to dismantle their systems. It denied the allegation and also asked relevant ROK agencies to provide itself with "detailed circumstances and evidence" related to this case. ROK Embassy on the same day also revealed in a statement made by its spokesperson that "hacking is an unlawful act throughout the world, and ROK government has been consistently cracking down on such illegal acts." The embassy argued, "Beijing has been keen on re! ports on the incident by ROK media. Relevant authorities in ROK have already been investigating into it. We want further collaboration with Seoul and will deal with the situation following deep probes into this." It also requested ROK media to deliver their reports regarding the matter after deep consideration on such PRC positions, after finding the facts. On July 20 PRC Xinhua News Agency quoted the Youth Reference newspaper (on July 19) as saying, "ROK media sources have reported allegations that students from a foreign language institution of PRC People`s Liberation Army have been involved in the hacking. However, it's a negligent report since they have not provided evidence."

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