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Solving the North Korean Nuclear Puzzle Appendix 5: Chronology of Events Related to the U.S.-North Korean Agreed Framework Compiled by Holly Higgins October -- December 1999 [October 1999] [November 1999] [December 1999] Note: The end notes to this chronology can be found here Additional pages: June 1998 - June 1999 July - September 1999 January - March 2000 April - June 2000 July - September 2000 October - December 2000 January - March 2001 April - June 2001 July - September 2001

Oct. 1:
North Korean leader Kim Jong-il met with South Korea’s Hyundai Group honorary chairman Chung Ju-yong and his son, Hyundai Chairman Jong Mong-hun.¹⁶²

Oct. 3:
South Korean Prime Minister Kim Jong Pil urged North Korea to implement the North-South Basic Agreement in order “to open an era of inter-Korean reconciliation and cooperation.”¹⁶³

The Hyundai Group reported that it would break ground for the construction of a large industrial complex on North Korea’s southwestern coast by the end of 1999.¹⁶⁴

Oct. 4:
Perry revealed the United States was on the brink of war with North Korea during the 1994 crisis, prior to the signing of the Agreed Framework. Perry said: “We were within a day of making major additions to our troop deployments in Korea, and we were about to undertake an evacuation of American civilians from Korea.”¹⁶⁵

Oct. 5:
South Korea’s National Red Cross disclosed that South Korea and the Red Cross had given more than 95 billion won in relief supplies, mostly fertilizer, to North Korea over the past five years.¹⁶⁶

A South Korean defense white paper reported that North Korea has developed as much as 2,500 to 5,000 tons of chemical weapons, including missile-deliverable weapons. The report also said that North Korea had activated a new missile division and was building five new tactical missile-launching bases, including four along the border with South Korea and one near the border with China.¹⁶⁷

Grand National Party lawmaker Lee Dong-bok claimed that North Korea had dug or was digging 26 tunnels under the DMZ and that the army was exploring four suspicious ones.¹⁶⁸

Chinese Foreign Minister Tang Jiaxuan arrived in Pyongyang for a five day visit at the invitation of his North Korean counterpart Paek Nam-sun. Both leaders pledged to improve ties on the occasion of the 50th anniversary of the establishment of diplomatic relations between the two countries.¹⁶⁹

In the 1999-2000 KEDO annual report, KEDO Executive Director Desaix Anderson said that KEDO needed more political support and funding for its project to succeed. Anderson announced that KEDO was in the final stage of preparation of the LWR construction site. A KEDO official said the top priority of construction was nuclear safety, and that this aspect was non-negotiable.¹⁷⁰

Oct. 7:
In a Rodong Sinmun commentary, North Korea said that the U.S. lifting of sanctions was “neither a benefit nor a gift.” It added that if the United States wanted to improve relations with North Korea, then it would need to totally lift economic sanctions, sign a peace treaty with North Korea and withdraw its troops from South Korea.¹⁷¹

Oct. 8:
The Japanese Defense Ministry reported that key components for North Korean submarines and speedboats, including radar, sonar and communications components, were made from Japanese products. ¹⁷²

Jeff Jones, American Chamber of Commerce President in South Korea, said the association planned to send a delegation of 10-15 representatives from U.S. businesses to North Korea in mid-November. He noted that one of the issues of concern was the lack of information on North Korea’s investment environment and regulatory schemes.¹⁷³

Oct. 9:
According to two reports issued by the U.S. General Accounting Office (GAO), the United States and foreign donors had trouble monitoring foreign food aid and heavy fuel oil assistance to North Korea. Power outages affected monitoring equipment at several sites consuming fuel. The GAO also reported that North Korea had failed to provide required reports to the UN World Food Program.¹⁷⁴

Oct. 10:
North Korean Foreign Minister Paek Nam-sun said he would consider China’s “one country, two systems” formula for Hong Kong as a model for reunifying the Korean peninsula.¹⁷⁵

Oct. 12:
North Korean troops had been seen in Congo, where they are said to be training forces loyal to President Laurent Kabila. Unnamed U.S. intelligence officials expressed fear that Kabila may have given North Korea access to the Shinkolobwe uranium mine in exchange for military assistance against Congolese rebels.¹⁷⁶

Perry urged the United States and its allies to preserve the Agreed Framework at a Senate Foreign Relations Committee hearing. The purpose of the hearing was to discuss the Perry report, which was released in unclassified form. Perry said North Korea would have the capacity to produce a significant number of nuclear weapons each year if the Agreed Framework was renounced.¹⁷⁷

British Deputy Undersecretary John Shepherd said Britain was ready to support South Korea’s engagement policy and contribute to opening North Korea to the international community. Shepherd also stated that Britain was committed to KEDO and to providing humanitarian aid bilaterally and through the European Union.¹⁷⁸

Oct. 13:
House International Relations Committee Chairman Gilman issued a press release, which said North Korea may still be pursuing a nuclear weapons program based on highly enriched uranium. Gilman stated in the release: “I am concerned our policies towards North Korea have failed and our aid is sustaining a brutal regime. I also fear that the Clinton administration has conditioned North Korea to believe that brinkmanship brings benefits.”¹⁷⁹

Oct. 14:
Japan announced that it would maintain sanctions on North Korea until it was sure North Korea wanted to improve relations. North Korea must show its willingness to move the bilateral relationship forward in a positive, constructive and sincere way.¹⁸⁰

The Asahi Shimbun released the results of a survey on Japanese and South Korean views on aid to North Korea. The report said that 73 percent of the Japanese respondents and 66 percent of the South Korean respondents supported aid to North Korea only if North Korea promised not to use the aid for military purposes. Eighty-one percent of the Japanese and 73 percent of the South Korean respondents were concerned about the North Korean threat.¹⁸¹

Four North Korean doctors visited Johns Hopkins Medical School in Baltimore to study the U.S. health care system. The visit was hailed as the first academic exchange between North Korea and the United States.¹⁸²

Oct. 19:
In a Washington Times interview, President Kim Dae Jung said Perry’s two-track diplomacy strategy to reduce tensions on the Korean peninsula was a “win-win” policy for both Koreas. ¹⁸³

Oct. 20:
North Korea’s KCNA quoted a Foreign Ministry spokesman as saying the United States has not abided by the Agreed Framework in terms of LWR construction and fuel oil deliveries. He added: “If the construction of the reactors is further delayed as now, the United States will be held wholly responsible for that.”¹⁸⁴

President Kim Dae Jung vowed to build a joint economic entity between North and South Korea. Kim said he would continue to promote inter-Korean economic cooperation by adhering to his engagement policy principle of separating politics from economy.¹⁸⁵

Oct. 21:
Mali announced that it fully supported South Korea’s “sunshine policy.” Mali Prime Minister Ibrahim Boubacar Keita said that he hoped South Korea and Mali would maintain close cooperation in international affairs.¹⁸⁶

South Korea announced the decision to help fund medium-sized conglomerates that wished to assist North Korean companies through mutual exchanges by providing access to government loans at an annual interest rate of 6 percent of the total project amount.¹⁸⁷

Oct. 22:
Japan’s ambassador to KEDO, Terusuke Terada, announced that Mexico and Peru shipped oil worth $100 thousand as an in-kind contribution to KEDO.¹⁸⁸

South Korea announced it would allow North Korean satellite television broadcasts to be viewed in South Korea. South Korean media companies would be able to individually receive the broadcasts and make use of their content, but recording the broadcasts with the purpose of conducting an act "advantageous to the enemy" would be punishable under the National Security Law.¹⁸⁹

The National Journal revealed excerpts from the North Korea Advisory Group report. In the excerpts, the Advisory Group claimed that North Korea had sidestepped the Agreed Framework in order to pursue a clandestine, ongoing, nuclear weapons program. The report also concluded that North Korea has successfully extracted concessions from the United States and its allies.¹⁹⁰

Oct. 23:
President Kim Dae Jung urged his ruling coalition to revise the National Security Law. Kim said, "It is inappropriate to term North Korea as an anti-state entity while proposing inter-Korean reconciliation and exchange." The South Korean National Assembly announced plans to begin debating the law's revision later in 1999.¹⁹¹

Oct. 25:
Japanese Prime Minister Keizo Obuchi and South Korean Prime Minister Kim Jong Pil concluded a two-day ministerial conference by agreeing to strengthen bilateral dialogue on security issues involving Northeast Asia. Japan and South Korea agreed to step up “future-oriented” cooperation and concluded a series of accords, including coordinated North Korea policy and designation of 2002 as a year of bilateral exchanges.¹⁹²

Oct. 26:
South Korea and the United States began their annual combined rear-area field training exercise, "Foal Eagle." The exercise, which involved the U.S. aircraft carrier Kitty Hawk, and some 500,000 South Korean and 35,000 U.S. troops, took part in land, sea and air drills that simulated possible attacks from North Korea. North Korea’s Foreign Ministry spokesman called the exercises “a perfidious act of abandoning trust in its dialogue partner.”¹⁹³

Oct. 27:
Rep. Sam Gejdenson sent an angry letter to House International Relations Committee Chairman Gilman protesting the chairman’s refusal to turn over copies of a committee report on U.S. policy towards North Korea to the Democrats. Gilman offered a version of the report to the National Journal (see Oct.22 entry), but refused to release the report to Democratic staffers.¹⁹⁴

South Korean Minister of Foreign Affairs and Trade Hong Soon-young called on North Korea to give up its military-oriented policy and instead focus on improving its unproductive agricultural sector. He noted that under North Korea's "army-first" policy, most resources available in North Korea would continue to be set aside for military build-up and missile development, saying, "These resources should be redirected to other industries, in particular for agricultural reform."¹⁹⁵

The House International Relations Committee held hearings on foreign assistance to North Korea. Rep. Tony Hall testified that it was inappropriate to put restrictions on food aid during a famine. Chairman Gilman said that food aid should not be terminated, but there were concerns about accountability. Gilman stated: "Despite assurances from the administration that U.S. aid will not go where food cannot be monitored, at least 14,000 tons of food aid, valued at $5 million, was diverted to military counties where monitors were denied access."¹⁹⁶

Joseph Bermudez, a senior researcher at Jane's Intelligence Review, told the International Relations Committee that North Korea may have one to five Taepo Dong-2 missiles. He also said that North Korea has 50 to 70 Nodong missiles and five to ten Taepo Dong-1 missiles, which can hit Japan. ¹⁹⁷

Oct. 28:
The Washington Times reported that North Korea has not stopped developing the Taepo Dong-2 and is stepping up sales of missiles and related technology around the world. U.S. intelligence reports said North Korea’s “level of confidence in the Taepo Dong-2 may be high enough to have it available [for use] without any flight test.”¹⁹⁸

South Korean and U.S. military authorities confirmed that North Korea was constructing missile bases at six different places for its Scud-C missiles. The bases are in North Hwanghae, Chagang and Kangwon Provinces.¹⁹⁹

Oct. 29:
Seoul’s Yonhap News Agency reported that North Korea is seeking to export Taepo Dong-1 missiles for $6 million a copy.²⁰⁰

Oct. 30:
The United States affirmed its intention to seek an agreement in future talks with North Korea on three new measures to reinforce existing restrictions on Pyongyang’s nuclear weapons development. The measures are intended to forbid North Korea from having uranium enrichment facilities as well as from designing and manufacturing nuclear weapons. The United States also would seek to establish an inspection regime to monitor the progress of related agreements reached by the two countries.²⁰¹

South Korea’s Hyundai Group obtained the exclusive right to develop and use tourist facilities at North Korea’s Mt. Kumgang for a period of 30 years.²⁰²

Oct. 31:
Japanese Prime Minister Obuchi called for laws that would allow Japan’s military to rapidly respond to outside aggression. Obuchi said it was urgent to create a system to quickly respond to various kinds of emergencies.²⁰³

Nov. 2:
A South Korean Defense Ministry official told the National Assembly that North Korea has produced and stored more than 5,000 tons of chemical agents. The ministry also said North Korea has a "significant amount" of biological agents that are "growing continuously." ²⁰⁴

Japanese Chief Cabinet Secretary Mikio Aoki announced the resumption of chartered flights between Japan and North Korea. The flights were resumed with the expectation that they would contribute to the strengthening of relations between North Korea and Japan, and North Korea and the United States.²⁰⁵

North Korea’s KCNA said the United States had stepped up electronic reconnaissance with U-2 and other spy planes since joint U.S.-South Korean military exercises began a week ago. KCNA accused the United States and South Korea of mobilizing more than 600 warplanes for assault drills over South Korea since military exercises began in late-October.²⁰⁶

Nov. 3:
The North Korea Advisory Group released its report, which stated North Korea’s development of weapons of mass destruction posed an increasing threat to the United States and its allies. The report found "significant evidence" that North Korea continued to develop nuclear weapons despite the 1994 Agreed Framework.²⁰⁷

Nov. 5:
U.S. Ambassador to South Korea Stephen Bosworth said that despite North Korea’s bid to bypass South Korea in establishing a relationship with the United States, Washington would not normalize ties with North Korea without a fundamental resolution of the conflict between both Koreas. "The Kim Jong-il regime tries to drive wedges between the United States, Korea and Japan, thus spawning some speculations that North Koreans might reach a separate agreement with the United States on bilateral issues and create a normal relationship at the expense of South Korea," Bosworth said, "However, I can forthrightly say that such a scenario cannot come to pass," he added.²⁰⁸

Nov. 7:
North Korean negotiators refused to allow Japanese tourists to join the Hyundai Mt. Kumgang tour. A source at the South Korean Ministry of Unification said that, at working level negotiations, North Korea chose to exclude Japanese tourists and foreign diplomats based in South Korea. Hyundai officials strongly suspect that North Korea wanted to independently court tourists from Japan to make more money.²⁰⁹

Nov. 8:
Russian Foreign Minister Igor Ivanov visited North Korea to discuss a new cooperation treaty that emphasized trade but excluded a military alliance. The move will overhaul the decades-old treaty that called for Russian military backing for North Korea in the event of war (see entry of Sept. 14).²¹⁰

The TCOG met in Washington through November 11 to discuss the up-coming Berlin talks. The session reviewed the lifting of North Korean sanctions and the three countries' mutual cooperation in their dealings with North Korea. The U.S., South Korean, and Japanese delegations were headed respectively by State Department Ambassador Wendy Sherman, South Korean Deputy Foreign Minister Jang Jai-ryong, and Japanese MOFA Deputy Vice Minister for Foreign Policy Yukio Takeuchi.²¹¹

North Korea said the U.S. National Missile Defense (NMD) plan would drive the world into an arms race. KCNA reported, "The United States is plotting to develop its missile defense systems while maintaining its strategic superiority."²¹²

North Korea’s Rodong Sinmun renewed the demand that South Korea abolish its National Security Law. ²¹³

Nov. 10:
The U.S. Defense Department said that it has agreed to sell 14 of the latest Patriot air defense systems to South Korea for $4.2 billion to defend against possible missile attack from North Korea. The deal, which is subject to review by the U.S. Congress, includes a full package of air-defense missiles, radars, fire control stations, electrical generators, trucks, trailers, maintenance equipment and other supplies.²¹⁴

Nov. 11:
In a Chosun Ilbo interview, Mongolian Prime Minister Rinchinnyamiin Amarjargal stated that Mongolia was greatly interested in peace and security on the Korean peninsula. He added that Mongolia would actively try to reinforce the relationship between North and South Korea.²¹⁵

President Kim Dae Jung reiterated his proposal to establish a security forum in Northeast Asia that included South and North Korea, the United States, Japan, China and Russia. Kim said that the forum could then be linked to Southeast Asian nations.²¹⁶

Nov. 12:
North Korean workers demanded pay raises from General Electric (GE) for their work at the construction site of the two light-water reactors. A South Korean government report revealed that GE had become reluctant about finishing the work at the site because of the workers' demands. The report suggested that North Korea is demanding higher wages because of its increased confidence following the agreement reached in October with the United States (see entry of Sept. 7-12).²¹⁷

Nov. 14:
The New York Times reported that, in 1998, South Korea built a rocket motor test station without notifying the United States. U.S. officials said the station, which included a large concrete or tempered steel cradle to hold rocket motors for test-firing, appeared to have been built secretly as part of a larger South Korean ballistic missile program. State Department spokesman James Rubin stated, "It is public knowledge that South Korea would like more flexibility in its missile program. The U.S. is sympathetic to its needs and desire for flexibility, and we are hoping to work out an arrangement that conforms to our nonproliferation goals and the missile regime standards."²¹⁸

Following talks with South Korean Foreign Minister Hong Soon-young, Egyptian Foreign Minister Amir Moussa expressed Egypt's willingness to mediate between the two Koreas. The two ministers exchanged views on strengthening bilateral relations and on a number of issues in the Middle East, the Korean peninsula and other regions. After the talks, the two countries signed an agreement on cooperation on peaceful use of nuclear energy and an agreement on the cooperation between the two countries' diplomatic agencies.²¹⁹

Nov. 15:
The second round of talks began between North Korea and the United States in Berlin.

The South Korean Agency for Defense Development announced that South Korea will begin mass-producing short-range, surface-to-air missiles that have been developed indigenously. The Chonma missile, with a range of up to 10 kilometers, is to be deployed to front-line areas beginning in December, 1999.²²⁰

South Korea’s Ministry of Foreign Affairs and Trade dismissed a New York Times report that U.S. spy satellites had detected evidence that the government was trying secretly to develop longer-range missiles. The government has not conducted secret tests to develop longer-range missiles in violation of an agreementwith the United States that limits South Korea's missile capability to 180 kilometers, a ministry official said.²²¹

Nov. 16:
Japanese officials said North Korea invited a Japanese parliamentary group, led by former Prime Minister Tomiichi Murayama, to visit North Korea.²²²

Nov. 18:
The Mt. Kumgang tour in North Korea celebrated its first anniversary. More than 140,000 South Korean tourists have stepped on North Korean soil since the Hyundai Group first launched cruise ships bound for the scenic mountain in November, 1998.²²³

U.S. Assistant Secretary of State Robert Einhorn said that while the U.S. understood South Korea's desire to boost its missile capability, South Korea should abide by the global Missile Technology Control Regime. He also indicated that the U.S. would block South Korea's request to increase its missile targeting to 500 kilometers.²²⁴

A South Korean government official said that North Korea was in the final stages of sealing its nuclear fuel rods after nearly three years of supervised operations (see entry of September 19).²²⁵

JoongAng Ilbo reported that North Korea was suspected to have held 40 kilograms of plutonium, which could be manufactured into 10 small nuclear warheads, since 1994.²²⁶

South Korean officials reported that North Korean Vice Foreign Minister Kim Gye Gwan called for the lifting of all U.S. economic sanctions against North Korea during the Berlin talks. The second and third day of the talks focused on the itinerary, agenda, and other matters related to the proposed visit by a high-level North Korean official to the United States. Pyongyang also complained about the delayed implementation of the partial lifting of U.S. sanctions.²²⁷

Nov. 19:
North Korea approved a visit by the American Chamber of Commerce to explore business opportunities in North Korea.²²⁸

Nov. 20:
The United States and North Korea ended negotiations in Berlin without agreement. A South Korean diplomatic source said that the two sides failed to reach an agreement on the high-level talks because of differences over what should be on the agenda at the proposed meeting. According to the source, North Korea demanded that the high-level talks deal with U.S. promises to lift additional economic sanctions and not launch an unprovoked military strike against North Korea. The United States wanted to include measures aimed at freezing North Korea’s missile and nuclear programs. ²²⁹

Nov. 21:
KEDO convened an executive council meeting in New York to launch debates on the forthcoming signing of a "turn-key contract" with the Korea Electric Power Corporation.²³⁰

Nov. 22:
U.S. Defense Secretary William Cohen and South Korean Defense Minister Cho Seong-tae pledged to maintain a strong joint military on the Korean peninsula while offering possible additional aid to North Korea in exchange for a less belligerent posture. Cohen said: "Pyongyang faces an important choice. It can pursue peace and prosperity for its people through cooperation, or it can continue its isolation through confrontation. Whichever choice North Korea makes, the United States and the Republic of Korea will be united in facing military threats and in pursuing diplomatic opportunities."²³¹

Nov. 23:
KCNA reported that "the United States has connived at and encouraged the moves for ballistic missile development in South Korea under its domination." Referring to the U.S.-South Korean agreement to extend the South Korean missile range to 300 kilometers, KCNA said, "this is an extremely adventurous arms buildup aimed at escalating the military confrontation between the North and South and bringing the situation in Korea to the brink of war."²³²

Nov. 24:
South Korean Foreign Affairs and Trade Minister Hong Soon-young said that the engagement policy toward North Korea would be the core of South Korea's diplomacy in the 21st century. Hong said, "there is no alternative to the engagement policy to induce North Korea to change." ²³³

European Union officials held talks with North Korean officials in Brussels. The meetings focused on building contacts and discussing possible food assistance to North Korea from European nations, alleged human rights abuses, the nonproliferation of weapons of mass destruction, and the need for transparency in food distribution.²³⁴

Nov. 25:
According to the Korea Trade and Investment Promotion Agency, North Korea imported massive quantities of Chinese military weapons and military advisers. As of September 1999, North Korea has received most of its $10-million-worth of weapons from the Chinese.²³⁵

Nov. 29:
In a speech in Washington, D.C., William Perry said that the U.S. wants North Korea to join the MTCR and not develop, deploy and export missiles with a range of over 300 kilometers.²³⁶

Dec. 2:
A Japanese parliamentary group, led by former Japanese Prime Minister Tomiichi Murayama, met with North Korean Secretary of the Central Committee of the Korean Workers Party Kim Young-sun and agreed that Japan and North Korea would resume unconditional bilateral negotiations to normalize diplomatic relations within the year. Both sides agreed to discuss the suspected North Korean abduction of Japanese nationals, the visits to Japan by Japanese spouses of North Korean citizens, and humanitarian issues such as the resumption of food aid.

Dec. 3:
The Korea Herald reported that North Korea and the United States agreed to station approximately 42 officials at each other's liaison offices. The United States planned to purchase the former East German embassy in North Korea to use as its liaison office, while North Korea is considering establishing its office within its UN representative. Some analysts forecast that Kim Jong-il would endorse the establishment of North Korea’s liaison office around February 16, Kim's birthday, or April 15, the birthday of the late Kim Il-sung.²³⁷

Dec. 11:
Sankei Shimun reported that North Korea had reconfirmed its demands for compensation from Japan for the latter's colonial rule and also for post-war damages suffered by the North Korean people in return for resuming diplomatic talks. The Korea Workers Party secretary for South Korean Affairs Kim Yong-soon reportedly made this point to a visiting Japanese delegation. According to minutes of the meeting, Kim quoted a clause from an unofficial agreement in 1990 between the Worker's Party and a delegation headed by former Japanese Prime Minister Kanemura detailing "compensation spanning forty-five years, before and after the war," and saying that relations could only improve when "stolen goods were returned."²³⁸

Dec. 13:
U.S. Ambassador to Japan Thomas Foley praised Japan's decision to re-start talks with North Korea. Foley told a news conference at the Japan Press Club: "I believe the United States, Japan and South Korea can bring about a peaceful, substantive dialogue with North Korea. We welcome the recent hopeful signs of an improvement in Japan-North Korea relations."²³⁹

Dec. 14:
The Japanese government announced that it would lift sanctions against North Korea. Japanese Chief Cabinet Secretary Mikio Aoki told a news conference: "the government has decided to lift the sanctions on food aid and to resume diplomatic normalization talks. We think it's a good opportunity for Japan and North Korea to start a dialogue. This is part of our hope that Japan and North Korea can eventually have normal relations."²⁴⁰

Dec. 15:
Officials from KEDO signed a deal in Seoul approving the construction of two light-water nuclear reactors for North Korea. Japanese Foreign Minister Yohei Kono said: "we strongly urge North Korea to fully cooperate with IAEA and concerned nations to fulfill its obligation to meet the request of international society."²⁴¹

South Korean officials denied press reports that KEDO would provide financial assistance for the construction of an electricity transmission and distribution system in North Korea. The article, which had appeared in the Korea Times, noted that North Korea's current electricity transmission and distribution system is insufficient to handle the two LWRs being constructed under the Agreed Framework. The unnamed official also said that KEDO is ready to help North Korea attract commercial loans from foreign financial institutions to construct and improve the grid in North Korea.²⁴²

Dec. 16:
A South Korean Foreign Affairs and Trade Ministry official said that South Korea and the United States agreed that the reopening of four-party peace talks should be put off until North Korea and the U.S. make progress in bilateral talks. "It is unlikely that North Korea would come to the negotiating table of four-party talks unless there is progress in its talks with the United States," the official said in a briefing on a visit to South Korea by U.S. special envoy Charles Kartman.²⁴³

Dec. 17:
Lee Sang-mok, chief of the Strategic Technology Development Division at the South Korean Science and Technology Ministry, said that South Korea plans to launch an independent space satellite with a domestically-built rocket into a low-altitude orbit by 2005. According to a ministry draft plan, South Korea will begin building a South Korean launch site in 2001 and have it ready for a test run by 2004. The project cost was estimated at 130 billion won ($182 million). ²⁴⁴

The Defense Department reported that U.S.-North Korean talks failed to reach an agreement on efforts to recover remains of U.S. troops missing in action since the Korean War. According to a Defense Department statement, the negotiators "failed to reach an overall agreement as the North Korean side sought to link an extensive humanitarian aid program to the remains recovery operations."²⁴⁵

Dec. 19:
President Kim Dae Jung said that ties between South Korea and North Korea should see major improvement in 2000. Kim told the state-run Korean Broadcast Station: "We can expect more changes in inter-Korean relations amid support from our allies like the United States and Japan, reduced tensions and growing cultural exchanges."²⁴⁶

Dec. 21:
Japanese and North Korean senior foreign ministry officials met for two hours to arrange the date, venue, level of chief delegates and agenda for rapprochement talks. A Japanese delegation source said that the officials stated their basic positions and were scheduled to meet again on December 22 to work out the details. Earlier in the day, at a separate Red Cross meeting, Japan signed an agreement with North Korea on "humanitarian" cooperation focused on food aid and the alleged abductions of Japanese civilians.²⁴⁷

The IAEA said that North Korea would be unable to receive major components needed to build two reactors under the Agreed Framework, if North Korea failed to fully disclose all nuclear material it produced prior to the Agreed Framework. IAEA Director-General Mohammad el-Baradei said, "they will not get the major components before we are satisfied that we have come to a conclusion or come to closure of their past program."²⁴⁸

South Korean Foreign Affairs-Trade Ministry official said that North Korea is hoping to send a vice-minister level official to Canada to discuss ways to improve bilateral relations.²⁴⁹

Dec. 22:
A 62-member North Korean delegation arrived in Seoul for two days of inter-Korean basketball matches, the first such sports exchange to be held in Seoul in 8 years. The matches were organized jointly by the Hyundai Group and the North Korean Asia-Pacific Peace Committee.²⁵⁰

Japan and North Korea agreed to meetings in early 2000, possibly in January or February, for talks to improve relations.²⁵¹

A South Korean government official said the Hyundai Group plans to resume tours for foreigners to Mt. Kumgang in early 2000, beginning with hundreds of ethnic Chinese living in Southeast Asia. The official said that the South Korean conglomerate originally planned to expand its programs to include foreigners in November, but was forced to back away from the plan when faced with North Korea's recalcitrance and insufficient marketing abroad.²⁵²

The Chosun Ilbo reported that the World Food Program (WFP) and 20 non-governmental organizations participating in aid activities in North Korea released a joint statement condemning the North Korean authorities' methods of inspection and delivery of aid supplies. The statement was signed by UN-affiliated organizations such as WFP, UN Development Program, UNOCHA, groups from Germany, Switzerland, and Canada, and U.S. groups including CARE, Catholic Rescue Service, Mercy Corps International, and World Vision. The statement said that the relief groups were continually restricted by North Korean authorities and have had difficulty monitoring the correct allocation of their humanitarian efforts.²⁵³

Dec. 24:
North Korea demanded financial compensation for the delay in the construction of the LWRs. A North Korean Ministry of Foreign Affairs spokesman said: “According to the North Korea-U.S. Basic Agreement, if the light-water reactor is not finished on time, we should be compensated for financial loss, or some other arrangement should be made.”²⁵⁴

Foreign Minister Yohei Kono said Japan is not ready to provide food aid to North Korea anytime soon because the proper environment for making such a move has yet to be created. Kono said: “It is necessary for us to comprehensively analyze North Korean reaction to the humanitarian issues Japan has presented, including the abduction of Japanese.”²⁵⁵

Dec. 27:
A government survey said that over 30 multinational companies have invested in North Korea since 1994. The areas foreign investors find attractive for investment include infrastructure, manufacturing, tourism, banking and finance. GE Capital, Motorola, and Goldman Sachs are reportedly seeking business opportunities in North Korea.²⁵⁶

Dec. 28:
Kim Yoon-kyu, president of Hyundai Asan, is planning to construct a medium-sized, export oriented light industry district covering about 2.64-3.3 million square meters in Shinuiju city, North Pyongan province, North Korea. The Shinuiju site is aimed at satisfying both the North Korean leader’s wishes and Hyundai’s desire to build the park closer to the inter-Korean border. The industrial complex, whose first phase is scheduled to be completed in early 2001, is intended to house about 850 manufacturers from South Korea and other countries in the fields of auto assembly, electronics and ship dismantlement.²⁵⁷

KEPCO signed contracts with Korea Heavy Industries and Construction, Korea Power Engineering, and Korea Nuclear Fuel to supply power plant equipment and services for the LWRs. ²⁵⁸

Dec. 29:
A report released by the Council for Democratic and Peaceful Unification, a South Korean presidential advisory body on national unification, said the sunshine policy will likely show considerable results next year. The report also predicted that North Korea would seek closer relationships not only with South Korea but also with the United States and Japan next year, while maintaining its trademark “dual policy” aimed at securing foreign support for its political system and continued economic aid.²⁵⁹

Dec. 30:
KCNA reported that North Korean authorities detained a Japanese man on suspicion of espionage. The man was identified as Takashi Sugishima, a researcher with the Market Economy Institute.²⁶⁰

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