2012.06.21 DPRK Daily the U.S. food aid to North Korea left open ; no prospect for Hwanggumpyong and Wihwado development plan ; the Release of the 2012 Trafficking in Persons Report


In voting on dueling amendments, Senate continues food aid to North Korea
By Daniel Strauss - 06/20/12

The Senate voted to continue food aid to North Korea, shooting down an amendment ending that aid and also approving a different one in support of it.
 
First, the Senate voted on an amendment by Sens. John Kerry (D-Mass.) and Dick Lugar (R-Ind.) that was essentially a counter to an amendment by Sen. Jon Kyl (R-Ariz.) to cut off U.S. food aid to North Korea. The Kerry-Lugar amendment was approved in a vote of 59 to 40, and Kyl's amendment failed 43 to 56.


S.AMDT.2454
Amends: S.3240
Sponsor: Sen Kerry, John F. [MA] (submitted 6/18/2012) (proposed 6/20/2012)
AMENDMENT PURPOSE:
To prohibit assistance to North Korea under title II of the Food for Peace Act unless the President issues a national interest waiver.

SEC. 3015. PROHIBITION ON ASSISTANCE FOR NORTH KOREA.
    (a) In General.--No amounts may be obligated or expended to provide assistance under title II of the Food for Peace Act (7 U.S.C. 1721 et seq.) to the Democratic People's Republic of Korea.
    (b) National Interest Waiver.--The President may waive subsection (a) if the President determines and certifies to the Committees on Agriculture, Nutrition, and Forestry and Foreign Relations of the Senate and the Committees on Agriculture and Foreign Affairs of the House of Representatives that the waiver is in the national interest of the United States.


S.AMDT.2354
Amends: S.3240
Sponsor: Sen Kyl, Jon [AZ] (submitted 6/12/2012) (proposed 6/20/2012)
AMENDMENT PURPOSE:
To prohibit assistance to North Korea under title II of the Food for Peace Act.

SEC. 3015. PROHIBITION ON ASSISTANCE FOR NORTH KOREA.
    No amounts may be obligated or expended to provide assistance under title II of the Food for Peace Act (7 U.S.C. 1721 et seq.) to the Democratic People's Republic of Korea.



No Water Supplies in Parched Pyongyang
By Kim Yong Hun  2012-06-21

With North Korea in the midst of an unusually difficult dry spell .. , a number of parts of Pyongyang have now been without running water for two months due to electricity shortages.

(North Korea relies on hydroelectric power generation for electricity.  Without the electricity generated by North Korea’s main dams due to drought, water supplies cannot be maintained.)  

“The water has been off in the residential districts of Pyongcheon, Daedonggang, Yeokpo and Yongseong since the Day of the Sun (April 15th)

Electricity must be supplied consistently if the capital city’s water supply system were to function correctly.

“As soon as electricity supplies to Pyongyang run into trouble, all the reservoirs from which the water is meant to come enter an emergency situation, too,” the source said. “Because insufficient electricity is coming from Heecheon, the pumps are not working properly and ultimately there is no water for homes either.”

The source believes that it is primarily the failure of the newly completed hydroelectric power station at Heecheon in Jagang Province to reach official expectations.  Water levels behind the dam at Heecheon are insufficient to meet electricity generation targets.

However, there are other reasons for the current state of affairs, notably events for the 10t0th anniversary of the birth of Kim Il Sung and the period of mass mobilization for farming.

“Because they wanted it for the April events, most of the electricity coming to Pyongyang went to the Mansudae and Central districts, while the places where most people actually live didn’t get regular supplies. Then in May they started sending most of it to cooperative farms in North Hwanghae Province for the mass farming mobilization.”

Currently, residential areas of the capital are receiving electricity two or three times a day for an hour or two at a time, meaning anything from three to five hours of power per day.



North Korea slams joint drill among U.S., Japan and South Korea
By K.J. Kwon, CNN , Thu June 21, 2012

North Korea called a joint military drill among U.S., South Korea and Japan "reckless military provocations" that could lead to "nuclear war" as the allies started their operations Thursday amid tensions in the region.
USS George Washington roared into the sea off the coast of South Korea to conduct a drill with the two allies.
A number of destroyers and other naval vessels will take part in the two-day exercise that will focus on reconnaissance, search and seizure, and rescue missions.
The trilateral exercise will be followed by a separate U.S./South Korea drill and routine carrier operations between the two navies


S. Korea, U.S., Japan kick off trilateral naval drills
2012-06-21

The U.S. nuclear-powered aircraft carrier, the USS George Washington, will take part in the exercise Friday then will join a separate joint drill with South Korea set for Saturday through Monday, the U.S. Defense Department said in a statement.

On Thursday, North Korea's ruling party newspaper Rodong Sinmun denounced the three-nation exercise as a "reckless provocation."



UPP main faction won't soften views
June 21,2012   By Kim Jung-wook, Ryu Jung-hwa[heejin@joongang.co.kr

The dominant, pro-North Korean faction of the minor opposition Unified Progressive Party debated how to get over the public uproar over its ideological views yesterday, and decided to stick to its decades-old convictions.

"If a liberal party follows only what ordinary people want, they will face a self-contradiction in which they will deny what they strive for," said Lee Ui-yeob, an inner-circle member of the UPP's Gyeonggi Dongbu Alliance, composed of mostly former pro-North student activists from the 1970s and 1980s. "Our top priority at this moment is to prevent the party from degenerating."

The party's largest faction held an open debate yesterday at the National Assembly to decide its future course.

The leadership run by the UPP's smaller faction recently announced reform measures for the party to make it less leftist and pro-North Korean to move it closer to the center

In their debate yesterday, the Gyeonggi Dongbu Alliance members clarified their position on maintaining stances that are hard line against the U.S. military presence and pro-Pyongyang.

"The rigged primary scandal was an irrational, crazy witch hunt based on groundless allegations," said Lee Ui-yeob, who was convicted in 2000 of forming a spy ring for North Korea and served two years and six months in jail



Prime Minister Adds to 6.25 Abductee List
By Mok Yong Jae , 2012-06-21

Pursuant to a recent advertizing campaign on subway trains and in other public places, the South Korean government has added 351 to the number of accepted cases of Korean War abduction by North Korea, bringing the total to 743.

Prime Minister Kim Hwang Sik formally added to the existing list of cases yesterday during the 6th meeting of a committee established under the auspices of the prime minister’s office to deal with the issue.

The newly added list of abductees contains a number of important figures, including the following: ten politicians, including National Assembly lawmakers Kim Kyo Hyun, Kwon Tae Hee, Park Young Rae and Park Chul Kyu; six journalists and media company employees, including Baek Un Sun (then of the Donga Ilbo), Lee Jong Seung (then of Seoul Shinmun); and six judicial officials, including Choi Dong Uk (then a Seoul high court judge) and Ha Jin Moon (then a Seoul district court judge).



An official at Sinuiju sees no prospect of getting Hwanggumpyong and Wihwado development plan off the ground
[460] “황금평 개발, 물 건너갔다”


Pyongyang's newest SEZ just another shortcut
By Leonid Petrov   June 22, 2012
Hwanggumpyong and Wihwado Economic Zone are simply measures to lure a handful of random foreign investors and should not be seen as a sign of change

special economic zone (SEZ)
Last week, North Korea announced to the world that it would make its two islands Hwanggumpyong and Wihwado a visa-free zone for foreigners. A special law has been adopted to attract foreign investors and give them preferential treatment in the payment of tariffs and taxes and in land use. Will this change in policy rescue the country from poverty and change things for the better?

the islands lie at the mouth of the Amnok River,.   Its location, just opposite the cities of Sinuiju on the Korean side and Dandong on the Chinese side, adds strategic importance to this historic place. In June 2011, a start-up ceremony took place on the island in recognition of the North Korea-China joint development and operation project.

The executive decision to develop the abandoned islands into a thriving industrial park was made by the late North Korean leader Kim Jong-il, who frequently visited China to solicit economic aid and investment. Soon after his death last December, his son and successor, Kim Jong-eun, called on the citizens of North Korea actively to do business with China and "bring in as much cash profit as possible". As such, the commercial importance of the Hwanggumpyong and Wihwado Economic Zone has only increased, raising speculations that it would be turned into the playground of capitalism for North Korea's centrally planned and autarkic economy.  (ß the question presented ; à. Short answer is no )

(Rason shows that China invests only if it is given an upper hand)
The earlier experience of joint development and cooperation in the Rason (Rajin-Seonbong) Economic and Trade Zone showed that neighboring China was keen on aggressively investing in infrastructure and manufacturing sectors provided (that) they could be guaranteed an upper hand in competition against Russian, Japanese or South Korean investors.    China's access to the Sea of Japan (or East Sea to Koreans) is cut short by the 17-kilometer-long Korean-Russian border, rendering the industrial base of Jilin and Heilongjing landlocked. On the contrary, the Hwanggumpyong and Wihwado Economic Zone, at the mouth of the Yalu (Amnok) River, which flows into the Yellow (West) Sea, seems to be a more attractive option for China.

Beijing once before thwarted North Korea's plans to set up an SEZ in Sinuiju, where Pyongyang intended to create a new Hong Kong or Macau. Chinese billionaire Yang Bin was appointed by Kim Jong-il as the governor of Sinuiju Special Administrative Region in 2002. That same year the North Korean government enacted a new economic policy on wage and pricing systems based on self-accounting management, known as the "July 1 Measures". To Pyongyang's dismay, China was not impressed by the prospects of having another Hong Kong on its northeastern frontier and quickly arrested Yang Bin for tax evasion. The message was clear: Any development close to China's borders must be endorsed by Beijing. (otherwise, thwarted by China)  

This time, the Hwanggumpyong and Wihwado Economic Zone is the product of a Sino-North Korean administrative and trade agreement.  Even the recent announcement that foreigners would be granted visa-free access and enjoy tax breaks still manages to provide China with full control over the movement of people and capital within its territory.  Pyongyang's official Korean Central News Agency reported that "upon presentation of passports or other equivalent documentation, foreigners and vehicles may enter or leave the zone through the designated route without a visa". It also promised that "customs duties will not be levied on materials brought into the zone for processing, or on finished goods". China's control of the surrounding geography means that Chinese investors and manufacturers will have an upper hand in trade. (in the Hwanggumpyong and Wihwado Economic Zone)

North Korea is in no position to bargain. Pyongyang's dependence on Beijing is growing as international sanctions over its nuclear and missile programs make it increasingly difficult for it to access international markets and credit. The impoverished country is striving to revitalize its economy through foreign investment in its economic zones. Since China has already invested about US$3 billion in developing port facilities and roads in the Rason Economic and Trade Zone, Beijing might decide to funnel significant capital to the Hwanggumpyong and Wihwado Economic Zone too. But will this contemporary "Wihwado Retreat" rescue the North Korean economy?

Beijing would love to see Pyongyang follow its example by introducing market-oriented reforms, but North Korea simply cannot come to terms with granting its population the many freedoms necessary to make such a reform successful. Even the Chinese-style reform of the late 1970s required some basic liberties (freedom of movement, information, association, etc). This is simply impossible in the conditions of an ongoing Korean War, in which North Korean society is continuously fed lies by the regime and inherently fears interaction with the rest of the world, particularly South Korea.  If Pyongyang decides to initiate reform, Chinese-style or otherwise, it would inevitably and quickly lead to the collapse of North Korea's political regime. Therefore, the very word "reform" is taboo in North Korea.

The North Korean leadership genuinely wants to modernize the economy but does not want to change its social and political life.  Pyongyang is constantly searching for shortcuts that could boost its dysfunctional economy without having to conduct systemic reform.  The new leader, despite of his young age, is surrounded by conservative older family members and elites who have no visionary plan for developing the country. Setting up tiny SEZs, which would generate foreign exchange without bringing about any change to the rest of the country, is a preferable way forward. As a result of this half-hearted policy, ordinary North Koreans will eat and dress better; they might even own personal computers and mobile phones. But they will continue to live in the same paranoid state of fear and dependency on the Great Leader's decisions.

The visa-free regime and tax holidays promised for the Hwanggumpyong and Wihwado Economic Zone are simply measures to lure a handful of random foreign investors and should not be seen as a sign of change in the economic thinking of Kim Jong-eun. Neither reform nor economic liberalization is in the cards because either of these would immediately jeopardize domestic stability. The zones of economic cooperation are reluctantly permitted by the North Koreans with apprehension that possible ideological contamination might cost more to the regime than economic benefit.

Given the circumstances of the ongoing inter-Korean conflict, the sustainable development of the North Korean economy is impossible. The regime is locked in a security dilemma and is reluctant to experiment.  Only peaceful co-existence and economic collaboration between Seoul and Pyongyang would remove fears and rebuild trust.

Increased inter-Korean cooperation, where the plentiful resources of the North are complemented by the cutting-edge technologies from the South, is capable of bringing North Korea back from its prolonged socio-economic crisis. Such collaboration would also enhance the powerhouse of South Korea, opening new markets beyond the Military Demarcation Line and linking the trans-Korean railway to the Eurasian continent

Leonid A Petrov PhD is a lecturer in Korean studies at the School of Languages and Cultures, Faculty of Arts and Social Sciences, University of Sydney.



Release of the 2012 Trafficking in Persons Report
Remarks
Hillary Rodham Clinton,    Secretary of State
Maria Otero,    Under Secretary for Civilian Security, Democracy, and Human Rights
Luis CdeBaca,    Ambassador-at-Large, Office To Monitor and Combat Trafficking in Persons
Vincent Paraiso
Benjamin Franklin Room, Washington, DC, June 19, 2012

The Report
Special Briefing
Luis CdeBaca, Ambassador-at-Large, Office To Monitor and Combat Trafficking in Persons
Via Teleconference, Washington, DC, June 19, 2012 

QUESTION: Yes. I would like to ask what was the particular different situation regarding North Korea in terms of human trafficking. And also, I would like to ask whether there has been any cases that U.S. Government prohibited North Korea from getting any loan from the IMF and World Bank because it was recorded as the Third Tier in terms of human trafficking by the State Department’s report.

AMBASSADOR CDEBACA: Well, one of the things that we’ve seen with North Korea repeatedly over the years is, again, this notion of state-supported forced labor.  And we are, of course, concerned not just about forced labor within the country, but also in recent years more and more labor exporting of North Korean, often, men, whether it’s into the Middle East, whether it’s into especially Russia and other places. And of course, with most countries, when they send workers overseas, it’s between the workers, the recruiters, the employers. When the North Koreans send workers overseas, they send the police with them and keep them under surveillance and retaliate against them if they try to fight for their rights or if they try to leave.

So we continue to see the situation of forced labor/human trafficking in North Korea as very grave. The United States is required to vote no in the international financial institutions when countries are on Tier 3 of the trafficking report. That’s something, frankly, that the Treasury Department and some others work on, and I don’t have an immediate answer for you on that notion of were there votes this year in which the United States voted no on this basis. But it’s something that we can look at and we can circle back.


N. Korea on U.S. list of worst-human trafficking nations for 10th year
2012/06/21

WASHINGTON, June 20 (Yonhap) -- North Korea remains on an annual U.S. list of the nations that could face sanctions for making little effort to combat human trafficking for a 10th consecutive year, according to the State Department's report Wednesday.

   In its annual Trafficking in Persons report, the State Department ranked North Korea once again in "Tier 3" for countries with the poorest record of fighting human trafficking.  A total of 17 nations were included in the 2012 list with Syria newly added

Since 2003, North Korea has been on the list of the Tier 3 countries that may "be subject to certain sanctions, whereby the U.S. government may withhold or withdraw non-humanitarian, no-trade-related foreign assistance," according to the department


US criticiZes N. Korea's forced labor
06-21-2012   By Kim Young-jin

“Workers’ salaries are deposited into accounts controlled by the North Korean government, which keeps most of the money, claiming fees for various ‘voluntary’ contributions to government endeavors.”

The report said Pyongyang worked harder to place North Korean workers in Russia especially in the Far East, where it estimated there were between 10,000 and 15,000 North Korean workers employed in logging camps. Such workers reportedly have only two days of rest per year, it said.