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<body lang=3DEN-GB link=3Dblue vlink=3D"#606420" style=3D'tab-interval:36.0=
pt'>

<div class=3DSection1>

<p class=3DMsoNormal align=3Dcenter style=3D'text-align:center'><st1:place =
w:st=3D"on"><st1:City
 w:st=3D"on"><b><span lang=3DEN-NZ style=3D'font-size:36.0pt;mso-bidi-font-=
size:10.0pt;
  font-family:Arial;mso-bidi-font-family:"Times New Roman";color:red;
  mso-bidi-font-style:italic'>Pyongyang</span></b></st1:City></st1:place><b=
><span
lang=3DEN-NZ style=3D'font-size:36.0pt;mso-bidi-font-size:10.0pt;font-famil=
y:Arial;
mso-bidi-font-family:"Times New Roman";color:red;mso-bidi-font-style:italic=
'>
Report<o:p></o:p></span></b></p>

<p class=3DMsoNormal align=3Dcenter style=3D'text-align:center'><b><span la=
ng=3DEN-NZ
style=3D'font-size:14.0pt;mso-bidi-font-size:10.0pt;font-family:Arial;mso-b=
idi-font-family:
"Times New Roman";color:#993300;mso-bidi-font-style:italic'>Vol 9 No 3 July
2007</span></b><span lang=3DEN-NZ style=3D'font-size:12.0pt;mso-bidi-font-s=
ize:
10.0pt'><o:p></o:p></span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ style=3D'font-size:12.0pt;mso-bidi-=
font-size:
10.0pt'><o:p>&nbsp;</o:p></span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ style=3D'font-size:12.0pt;mso-bidi-=
font-size:
10.0pt'><o:p>&nbsp;</o:p></span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ style=3D'font-size:12.0pt;mso-bidi-=
font-size:
10.0pt'>In this issue-<o:p></o:p></span></p>

<p class=3DMsoNormal style=3D'margin-left:54.0pt;text-indent:-18.0pt;mso-li=
st:l5 level1 lfo7;
tab-stops:list 54.0pt'><![if !supportLists]><span lang=3DEN-NZ style=3D'fon=
t-size:
12.0pt;mso-bidi-font-size:10.0pt;font-family:Wingdings;mso-fareast-font-fam=
ily:
Wingdings;mso-bidi-font-family:Wingdings'><span style=3D'mso-list:Ignore'>n=
<span
style=3D'font:7.0pt "Times New Roman"'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </spa=
n></span></span><![endif]><b
style=3D'mso-bidi-font-weight:normal'><span lang=3DEN-NZ style=3D'font-size=
:12.0pt;
mso-bidi-font-size:10.0pt'>The February agreement &#8211; prospects and
problems<o:p></o:p></span></b></p>

<p class=3DMsoNormal style=3D'margin-left:54.0pt;text-indent:-18.0pt;mso-li=
st:l5 level1 lfo7;
tab-stops:list 54.0pt'><![if !supportLists]><span lang=3DEN-NZ style=3D'fon=
t-size:
12.0pt;mso-bidi-font-size:10.0pt;font-family:Wingdings;mso-fareast-font-fam=
ily:
Wingdings;mso-bidi-font-family:Wingdings'><span style=3D'mso-list:Ignore'>n=
<span
style=3D'font:7.0pt "Times New Roman"'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </spa=
n></span></span><![endif]><b
style=3D'mso-bidi-font-weight:normal'><span lang=3DEN-NZ style=3D'font-size=
:12.0pt;
mso-bidi-font-size:10.0pt'>Case of terror bombing of South Korean plane
reopened<o:p></o:p></span></b></p>

<p class=3DMsoNormal style=3D'margin-left:54.0pt;text-indent:-18.0pt;mso-li=
st:l5 level1 lfo7;
tab-stops:list 54.0pt'><![if !supportLists]><span lang=3DEN-NZ style=3D'fon=
t-size:
12.0pt;mso-bidi-font-size:10.0pt;font-family:Wingdings;mso-fareast-font-fam=
ily:
Wingdings;mso-bidi-font-family:Wingdings'><span style=3D'mso-list:Ignore'>n=
<span
style=3D'font:7.0pt "Times New Roman"'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </spa=
n></span></span><![endif]><b
style=3D'mso-bidi-font-weight:normal'><span lang=3DEN-NZ style=3D'font-size=
:12.0pt;
mso-bidi-font-size:10.0pt'>Bolton&#8217;s ghost haunts UN &#8211; vexatious
charges against UNDP<o:p></o:p></span></b></p>

<p class=3DMsoNormal style=3D'margin-left:54.0pt;text-indent:-18.0pt;mso-li=
st:l5 level1 lfo7;
tab-stops:list 54.0pt'><![if !supportLists]><span lang=3DEN-NZ style=3D'fon=
t-size:
12.0pt;mso-bidi-font-size:10.0pt;font-family:Wingdings;mso-fareast-font-fam=
ily:
Wingdings;mso-bidi-font-family:Wingdings'><span style=3D'mso-list:Ignore'>n=
<span
style=3D'font:7.0pt "Times New Roman"'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </spa=
n></span></span><![endif]><b
style=3D'mso-bidi-font-weight:normal'><span lang=3DEN-NZ style=3D'font-size=
:12.0pt;
mso-bidi-font-size:10.0pt'>&#8216;Swinging from the chandeliers - NZ-style
teaching in <st1:City w:st=3D"on"><st1:place w:st=3D"on">Pyongyang</st1:pla=
ce></st1:City>
<o:p></o:p></span></b></p>

<p class=3DMsoNormal style=3D'margin-left:36.0pt;text-indent:0cm'><!--[if g=
te vml 1]><o:wrapblock><v:line
  id=3D"_x0000_s1040" style=3D'position:absolute;left:0;text-align:left;z-i=
ndex:2'
  from=3D"-22.95pt,1.8pt" to=3D"454.05pt,1.8pt" strokeweight=3D"4.5pt">
  <v:stroke linestyle=3D"thickThin"/>
 </v:line><![endif]--><![if !vml]><span style=3D'mso-ignore:vglayout;positi=
on:
 relative;z-index:2'><span style=3D'left:0px;position:absolute;left:-34px;
 top:-1px;width:643px;height:7px'><img width=3D643 height=3D7
 src=3D"pyr9_3_files/image001.gif" v:shapes=3D"_x0000_s1040"></span></span>=
<![endif]><!--[if gte vml 1]></o:wrapblock><![endif]--><b
style=3D'mso-bidi-font-weight:normal'><span lang=3DEN-NZ style=3D'font-size=
:12.0pt;
mso-bidi-font-size:10.0pt'><o:p>&nbsp;</o:p></span></b></p>

</div>

<b style=3D'mso-bidi-font-weight:normal'><span lang=3DEN-NZ style=3D'font-s=
ize:12.0pt;
mso-bidi-font-size:10.0pt;font-family:"Times New Roman";mso-fareast-font-fa=
mily:
"Times New Roman";mso-ansi-language:EN-NZ;mso-fareast-language:EN-US;
mso-bidi-language:AR-SA'><br clear=3Dall style=3D'page-break-before:auto;
mso-break-type:section-break'>
</span></b><br style=3D'mso-ignore:vglayout' clear=3DALL>

<div class=3DSection2>

<h1 style=3D'margin-left:0cm;tab-stops:-28.05pt'><span lang=3DEN-NZ>Comment=
ary</span></h1>

<p class=3DMsoNormal><span lang=3DEN-NZ>The shutdown of the DPRK plutonium =
reactor,
the New York Times noted angrily last week, shows that &#8216;real nonproli=
feration
diplomacy can produce real results&#8217; as long as it is stripped of
&#8216;empty, ideological posturing&#8217;.<span
style=3D'mso-spacerun:yes'>&nbsp; </span>The target of the Times&#8217;
fulminations was not, as is usually the case, and as it will probably be ag=
ain
tomorrow, the government in <st1:City w:st=3D"on">Pyongyang</st1:City>, but=
 that
in <st1:State w:st=3D"on"><st1:place w:st=3D"on">Washington</st1:place></st=
1:State>.<span
style=3D'mso-spacerun:yes'>&nbsp; </span>Tearing up the agreement it had
inherited from the <st1:place w:st=3D"on"><st1:City w:st=3D"on">Clinton</st=
1:City></st1:place>
administration had only produced an &#8216;embarrassing outcome for the har=
d-line
tactics favored by Vice-President Dick Cheney&#8217;.<span
style=3D'mso-spacerun:yes'>&nbsp; </span>The Bush administration, recalled =
the
Times, had &#8216;walked away from Mr. Clinton&#8217;s deal in 2002, with
sensational charges, from which it has since retreated, that North Korea was
pursuing a second, secret bomb-making program based on uranium enrichment.&=
#8217;
We might recall that the newspaper had itself published an embarrassed mea
culpa that the administration&#8217;s &#8216;sensational charges&#8217; abo=
ut <st1:country-region
w:st=3D"on"><st1:place w:st=3D"on">Iraq</st1:place></st1:country-region>,
subsequently proven fraudulent, had misled it into enthusiastically support=
ed
the disastrous invasion.<span style=3D'mso-spacerun:yes'>&nbsp; </span>Were=
 the
charges against DPRK equally fraudulent?<span style=3D'mso-spacerun:yes'>&n=
bsp;
</span>Probably, but since they cannot be disproved &#8211; and there&#8217=
;s
the rub &#8211; the Times is left with nagging doubt, and anger about &#821=
6;the
six bombs&#8217; worth of nuclear fuel Pyongyang produced while Washington
strutted and postured.&#8217; </span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>Strong words from an erstwhile supp=
ort of
the president&#8217;s <st1:country-region w:st=3D"on"><st1:place w:st=3D"on=
">North
  Korea</st1:place></st1:country-region> policy, but does it signify a sea
change in American policy? That, regretfully, is not so certain.</span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>With the Six Party Talks having res=
umed,
and now adjourned until September, with working groups meeting in the meant=
ime,
it is timely to attempt to ascertain prospects. It makes sense to take the =
six
countries in turn.<span style=3D'mso-spacerun:yes'>&nbsp; </span>No country
outside that charmed circle can affect the outcome of the talks. With the
exception, of course, of the <st1:place w:st=3D"on">Middle East</st1:place>=
. <span
style=3D'mso-spacerun:yes'>&nbsp;</span>The quagmire there, and the prospec=
t of
an attack on <st1:place w:st=3D"on"><st1:country-region w:st=3D"on">Iran</s=
t1:country-region></st1:place>,
reports the <i style=3D'mso-bidi-font-style:normal'>Washington Post</i>, is
requiring the President and his cabinet to focus and pare down commitments
elsewhere, including the Korean peninsula. If the <st1:country-region w:st=
=3D"on">US</st1:country-region>
position in the Middle East deteriorates further, then the administration m=
ay
be more prepared to do a deal on <st1:place w:st=3D"on"><st1:country-region
 w:st=3D"on">Korea</st1:country-region></st1:place>.<span
style=3D'mso-spacerun:yes'>&nbsp; </span></span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>Of the six countries themselves, bo=
th the
DPRK and the <st1:country-region w:st=3D"on">US</st1:country-region> can de=
stroy
the peace process, but only the <st1:country-region w:st=3D"on"><st1:place =
w:st=3D"on">US</st1:place></st1:country-region>
can make it succeed. The other countries are only supporting players who can
assist the principal actors but not affect the outcome.</span></p>

<p class=3DMsoNormal><st1:country-region w:st=3D"on"><span lang=3DEN-NZ>Rus=
sia</span></st1:country-region><span
lang=3DEN-NZ>&#8217;s involvement with the talks has been strengthened with=
 its
assistance in transferring DPRK funds from the Banco Delta Asia (BDA) in <s=
t1:place
w:st=3D"on">Macau</st1:place>.<span style=3D'mso-spacerun:yes'>&nbsp; </spa=
n><st1:country-region
w:st=3D"on"><st1:place w:st=3D"on">China</st1:place></st1:country-region>&#=
8217;s
role as the host of the talks gives it a central position as a conciliator =
and
facilitator. It is <st1:country-region w:st=3D"on">North Korea</st1:country=
-region>&#8217;s
main trading partner and investor and, after <st1:country-region w:st=3D"on=
">Canada</st1:country-region>,
<st1:country-region w:st=3D"on"><st1:place w:st=3D"on">America</st1:place><=
/st1:country-region>&#8217;s
main trader.<span style=3D'mso-spacerun:yes'>&nbsp; </span>This makes it ve=
ry
important to both <st1:country-region w:st=3D"on">North Korea</st1:country-=
region>
and <st1:country-region w:st=3D"on"><st1:place w:st=3D"on">America</st1:pla=
ce></st1:country-region>
to a degree that no other country approaches.<span
style=3D'mso-spacerun:yes'>&nbsp; </span>On the other hand, the rise of <st=
1:country-region
w:st=3D"on">China</st1:country-region> is what, apart from the Middle East,=
 is
increasingly dominating <st1:country-region w:st=3D"on">US</st1:country-reg=
ion>
strategic thinking and is arguably the driver behind its <st1:country-region
w:st=3D"on"><st1:place w:st=3D"on">Korea</st1:place></st1:country-region> p=
olicy. <st1:country-region
w:st=3D"on">China</st1:country-region> is thus very cautious in dealing wit=
h the <st1:country-region
w:st=3D"on">US</st1:country-region> and anxious not to offer any provocatio=
n or
excuse to the hawks in <st1:place w:st=3D"on"><st1:State w:st=3D"on">Washin=
gton</st1:State></st1:place>.<span
style=3D'mso-spacerun:yes'>&nbsp; </span>It attempts to ease <st1:State w:s=
t=3D"on">Washington</st1:State>
into a negotiated settlement with <st1:City w:st=3D"on">Pyongyang</st1:City=
> that
will preserve the status quo in <st1:place w:st=3D"on">Northeast Asia</st1:=
place>,
and defuse tension.</span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>A prime beneficiary of that tension=
, and a
major driver of it, has been Abe Shino&#8216;s thrust for a remilitarised a=
nd
probably nuclear-armed Japan. Abe is resisting strong pressure to step down=
 after
the Liberal Democratic Party defeat in the Upper House elections on 29 July=
. Whether
he stays or goes will probably not make much difference in the short run. T=
he
LDP has had its mandate dented, but that is not because Korea-bashing is not
popular, but because its appeal was insufficient to overcome other deficits=
. Abe's
likely successor Taro Aso is just as hawkish and will almost certainly play=
 the
<st1:country-region w:st=3D"on"><st1:place w:st=3D"on">North Korea</st1:pla=
ce></st1:country-region>
card with the same gusto, and for the same reasons. While Seoul has indicat=
ed
frustration at Abe&#8217;s deceitful exploitation of the &#8216;abductee
issue&#8217; at the talks, Pyongyang has expressed outrage and warned that
&#8216;full implementation&#8217; of the February agreements depends on Jap=
an
as well as the US.<span style=3D'mso-spacerun:yes'>&nbsp; </span>However, i=
t is
difficult to see what more damage <st1:country-region w:st=3D"on"><st1:place
 w:st=3D"on">Japan</st1:place></st1:country-region> can do.<span
style=3D'mso-spacerun:yes'>&nbsp; </span>It has cut off trade and the flow =
of
remittances to the DPRK and cracked down on the pro-Pyongyang Korean
organisation in <st1:country-region w:st=3D"on"><st1:place w:st=3D"on">Japa=
n</st1:place></st1:country-region>.<span
style=3D'mso-spacerun:yes'>&nbsp; </span>Its ability to have an autonomous =
effect
on the agreement is circumscribed by the American government, and here the
signals are mixed. During Abe&#8217;s visit to <st1:State w:st=3D"on">Washi=
ngton</st1:State>
in April Bush appeared to agree that the DPRK could not be removed from the
Terrorism List until <st1:country-region w:st=3D"on"><st1:place w:st=3D"on"=
>Japan</st1:place></st1:country-region>
was satisfied that the abductee issue had been resolved.<span
style=3D'mso-spacerun:yes'>&nbsp; </span>Rice, realising that meant giving =
Abe a
veto over the negotiation process, which he would wield, stepped in and
categorically said that the abduction issue was irrelevant because it did n=
ot
involve US citizens. </span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>The <st1:country-region w:st=3D"on"=
><st1:place
 w:st=3D"on">US</st1:place></st1:country-region> government is legally obli=
ged to
employ sanctions against countries on the Terrorism List and being taken of=
f of
the list has been a major DPRK demand. In the February agreement <st1:State
w:st=3D"on"><st1:place w:st=3D"on">Washington</st1:place></st1:State> promi=
sed to &#8216;begin
the process of removing the designation of the DPRK as a state-sponsor of
terrorism and advance the process of terminating the application of the Tra=
ding
with the Enemy Act with respect to the DPRK.&#8217; The DPRK has warned tha=
t it
would not move beyond mothballing its programme unless that promise was
honoured.</span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>Perhaps it was by coincidence, or p=
erhaps
not, that the incident which caused the DPRK to be put on the list in the f=
irst
place has just resurfaced in <st1:City w:st=3D"on"><st1:place w:st=3D"on">S=
eoul</st1:place></st1:City>.<span
style=3D'mso-spacerun:yes'>&nbsp; </span>In 1987, just as <st1:country-regi=
on
w:st=3D"on"><st1:place w:st=3D"on">South Korea</st1:place></st1:country-reg=
ion> was
preparing for presidential elections, Korean Airlines flight KAL858 was blo=
wn
up in mid-air, killing all 115 people on board.<span
style=3D'mso-spacerun:yes'>&nbsp; </span>The atrocity was blamed on <st1:co=
untry-region
w:st=3D"on"><st1:place w:st=3D"on">North Korea</st1:place></st1:country-reg=
ion>,
which denied involvement. There have been doubts about responsibility ever
since, which have been kept alive by relatives of the victims.<span
style=3D'mso-spacerun:yes'>&nbsp; </span>One reason for suspicion was that =
the
incident benefited not the North, nor the South Korean left, but the
military&#8217;s candidate, Roh Tae-woo, creating by one calculation 2 mill=
ion
extra votes and transforming him from a general to a president. It has been
alleged that agents of Roh's mentor, Chun Doo-hwan, the retiring dictator, =
were
behind the bombing.<span style=3D'mso-spacerun:yes'>&nbsp; </span>An inconc=
lusive
investigation by the National Intelligence Service (successor organisation =
to
the one suspected of the bombing) in 2005 left the relatives unsatisfied and
the case has just been reopened by the Truth and Reconciliation Commission.=
</span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>If the commission clears the DPRK a=
nd
indicts the Chun regime, or even if it casts doubt on the verdict, this cou=
ld
facilitate de-listing and the removal of this barrier to moving the agreeme=
nt
forward.<span style=3D'mso-spacerun:yes'>&nbsp; </span>It would also have an
impact on public opinion in <st1:place w:st=3D"on"><st1:country-region w:st=
=3D"on">South
  Korea</st1:country-region></st1:place> in this election year.<span
style=3D'mso-spacerun:yes'>&nbsp; </span>The opposition Grand National Party
(GNP), presumably calculating that peace was on its way and that election
prospects would be imperilled if they adhered to a confrontational North Ko=
rea
policy when Washington was coming to terms with Pyongyang, has recast its
policy to one not dissimilar to that of the ruling party.<span
style=3D'mso-spacerun:yes'>&nbsp; </span>Engagement is in the air. Whether =
the
GNP is correct in its assumption about <st1:place w:st=3D"on"><st1:State w:=
st=3D"on">Washington</st1:State></st1:place>
is another matter.</span></p>

<p class=3DMsoNormal><st1:place w:st=3D"on"><st1:City w:st=3D"on"><span lan=
g=3DEN-NZ>Pyongyang</span></st1:City></st1:place><span
lang=3DEN-NZ>, for its part, has moved with alacrity to implement its promi=
se,
under this stage of the agreement, to suspend its nuclear programme and to
invite in the International Atomic Energy Agency (IAEA).<span
style=3D'mso-spacerun:yes'>&nbsp; </span>However, it has frequently reitera=
ted that
the agreement specifies that the process is a mutually sequential one &#821=
1; &#8216;action
for action&#8217; &#8211; and that it will not carry out the subsequent sta=
ges
unless the US (and <st1:country-region w:st=3D"on"><st1:place w:st=3D"on">J=
apan</st1:place></st1:country-region>)
honour commitments under preceding ones.<span style=3D'mso-spacerun:yes'>&n=
bsp;
</span>The lifting of financial sanctions is one example of this, as is the
removal from the Terrorism List.<span style=3D'mso-spacerun:yes'>&nbsp;
</span>More difficult and less fixed in sequence, is the issue of Light Wat=
er
reactors (LWRs) which the Chinese-drafted Joint Statement of September 2005=
 had
deliberately left vague.<span style=3D'mso-spacerun:yes'>&nbsp; </span></sp=
an></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>It is ominous that <st1:place w:st=
=3D"on"><st1:country-region
 w:st=3D"on">US</st1:country-region></st1:place> negotiator Chris Hill has
brushed aside the comments by the DPRK&#8217;s Kim Kye Gwan that they would=
 not
fully disable their reactors until they got the LWRs they had long claimed,=
 and
had been promised under the Agreed Framework. Hill, with great chutzpah, sa=
id that
the US would &#8216;discuss&#8217; the provision of LWRs &#8216;when North
Korea gets out of this dirty nuclear business that they've been in and retu=
rns
to the Nuclear Nonproliferation Treaty&#8217;.<span
style=3D'mso-spacerun:yes'>&nbsp; </span>When, one wonders, will the <st1:c=
ountry-region
w:st=3D"on"><st1:place w:st=3D"on">US</st1:place></st1:country-region> hono=
ur its
commitment under the NPT and get out of this same dirty nuclear business?</=
span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>It seems unlikely that <st1:City w:=
st=3D"on">Pyongyang</st1:City>
will irreversibly disable its nuclear programme on the hope that <st1:State
w:st=3D"on"><st1:place w:st=3D"on">Washington</st1:place></st1:State> will =
accede
to its requests when it has no bargaining chips left. This issue alone could
send the process into limbo. There are others, notably the issue of uranium
enrichment.<span style=3D'mso-spacerun:yes'>&nbsp; </span>It will be diffic=
ult, probably
impossible, for <st1:country-region w:st=3D"on">North Korea</st1:country-re=
gion>
to do anything which will satisfy American critics of the agreement (just a=
s it
will be impossible for the <st1:country-region w:st=3D"on">US</st1:country-=
region>
to prove that it has no nuclear weapons in <st1:country-region w:st=3D"on">=
<st1:place
 w:st=3D"on">South Korea</st1:place></st1:country-region>). There is one sl=
ight
possibility that a way around this may be found.<span
style=3D'mso-spacerun:yes'>&nbsp; </span>The South Korean press has reporte=
d that
a North Korean diplomat has suggested that the matter be resolved &#8220;in=
 the
style of Kumgchang-ri&#8221;.<span style=3D'mso-spacerun:yes'>&nbsp; </span=
>This
remark is an allusion to the site which the <st1:country-region w:st=3D"on"=
><st1:place
 w:st=3D"on">US</st1:place></st1:country-region> alleged in 1999 had nuclear
facilities in violation of the Agreed Framework</span><span lang=3DEN-NZ
style=3D'font-family:"Courier New";mso-fareast-language:EN-GB'>.</span><span
lang=3DEN-NZ><span style=3D'mso-spacerun:yes'>&nbsp; </span>The <st1:countr=
y-region
w:st=3D"on"><st1:place w:st=3D"on">US</st1:place></st1:country-region> hand=
ed over
a considerable amount of food aid in order to be allowed to make an inspect=
ion,
which disproved the allegations.<span style=3D'mso-spacerun:yes'>&nbsp; </s=
pan>A
similar arrangement would only work this time, however, if the US were to
specify a site, but American reports on claims to have knowledge of an uran=
ium
enrichment facility are contradictory.</span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>Beyond the negotiating issues which=
 could
scuttle the agreement lies the fundamental disunity and incoherence of the =
Bush
administration.<span style=3D'mso-spacerun:yes'>&nbsp; </span>Indicative of=
 this
was the allegation in January, just when Hill was negotiating with Kim in <=
st1:State
w:st=3D"on"><st1:place w:st=3D"on">Berlin</st1:place></st1:State> the deal =
that was
to lead to the February agreement, that the DPRK was misappropriating 'tens=
 of
millions of dollars' from the United Nations Development Programme (UNDP).<=
span
style=3D'mso-spacerun:yes'>&nbsp; </span>The charges, laid by Mark Wallace,=
 a
prot&eacute;g&eacute; of John Bolton at the UN, were easily refuted by the
UNDP, and an external audit ordered by the obliging Ban Ki-moon cleared the=
m. Undeterred,
Bolton's successor at the UN, Zalmay Khalilzad returned to the attack with
blatantly vexatious complaints, including one that the UNDP had supplied bo=
oks
for a study programme of the Institute for Peace and Disarmament in Pyongya=
ng,
including one on the psychology of nuclear proliferation written by an Amer=
ican
academic and published by Cambridge University Press for &pound;19.95. That
this was allowed to go on while Under-Secretary Hill was conducting delicate
negotiations with the DPRK says a lot about dissension within the Bush
administration and the lack of strategic leadership.</span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>There have been rumours about a pla=
nned
summit between Roh Moo-hyun and Kim Jong Il, and if this comes off, and is =
as
successful as the one in 2000, it will do much to help the peace process. L=
ess
talked about and less likely, but more important, would be a visit by Secre=
tary
Rice to <st1:place w:st=3D"on"><st1:City w:st=3D"on">Pyongyang</st1:City></=
st1:place>.<span
style=3D'mso-spacerun:yes'>&nbsp; </span>If that were to happen, and were as
successful as Albright's in 2000, it could give a crucial impetus to the
negotiations. It would help bind her personally to a negotiated
settlement.<span style=3D'mso-spacerun:yes'>&nbsp; </span>That means a lot,
because the really important negotiations are not taking place in <st1:City
w:st=3D"on">Pyongyang</st1:City>, <st1:City w:st=3D"on">Seoul</st1:City>, o=
r even <st1:City
w:st=3D"on">Beijing</st1:City>, but in <st1:State w:st=3D"on"><st1:place w:=
st=3D"on">Washington</st1:place></st1:State>.<span
style=3D'mso-spacerun:yes'>&nbsp; </span>There is a lot of opposition withi=
n the <st1:country-region
w:st=3D"on">US</st1:country-region> political elite and media to a settleme=
nt
involving peaceful coexistence, the only settlement <st1:place w:st=3D"on">=
<st1:City
 w:st=3D"on">Pyongyang</st1:City></st1:place> will accept. It runs from Vice
President Cheney downwards and has many supporters, in and out of office.<s=
pan
style=3D'mso-spacerun:yes'>&nbsp; </span>If Rice decides that peaceful
coexistence is acceptable and necessary, and fights for it, she might
conceivably bring it off.</span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ><o:p>&nbsp;</o:p></span></p>

<div style=3D'mso-element:para-border-div;border:none;border-bottom:solid w=
indowtext 3.0pt;
padding:0cm 0cm 1.0pt 0cm'>

<p class=3DMsoNormal style=3D'border:none;mso-border-bottom-alt:solid windo=
wtext 3.0pt;
padding:0cm;mso-padding-alt:0cm 0cm 1.0pt 0cm'><b style=3D'mso-bidi-font-we=
ight:
normal'><span lang=3DEN-NZ>Tim Beal<span style=3D'mso-bidi-font-weight:bold=
'><o:p></o:p></span></span></b></p>

</div>

<p class=3DMsoNormal><span lang=3DEN-NZ><o:p>&nbsp;</o:p></span></p>

</div>

<span lang=3DEN-NZ style=3D'font-size:10.0pt;font-family:"Times New Roman";
mso-fareast-font-family:"Times New Roman";mso-ansi-language:EN-NZ;mso-farea=
st-language:
EN-US;mso-bidi-language:AR-SA'><br clear=3Dall style=3D'page-break-before:a=
uto;
mso-break-type:section-break'>
</span>

<div class=3DSection3>

<h1 style=3D'margin-left:0cm'><a name=3D1><span lang=3DEN-NZ>Full Implement=
ation of
February 13 Agreement Depends on </span></a><st1:country-region w:st=3D"on"=
><span
 style=3D'mso-bookmark:1'><span lang=3DEN-NZ>U.S.</span></span></st1:countr=
y-region><span
style=3D'mso-bookmark:1'><span lang=3DEN-NZ> and <st1:country-region w:st=
=3D"on"><st1:place
 w:st=3D"on">Japan</st1:place></st1:country-region> </span></span></h1>

<span style=3D'mso-bookmark:1'></span>

<p class=3DMsoNormal><span lang=3DEN-NZ>Pyongyang, July 15 (KCNA) -- Given =
the fact
that the DPRK has fulfilled all its commitments, the full implementation of=
 the
February 13 agreement depends on how the other five participating countries=
 of
the six-party talks honor their commitments on the principle of &quot;action
for action&quot; and on what practical measures the U.S. and Japan, in
particular, will take to roll back their hostile policies toward the DPRK. =
..//..</span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>The DPRK suspended the operation of=
 the
above-said nuclear facilities on July 14, the day the first shipment of 50,=
000
tons of heavy oil arrived and allowed members of the International Atomic
Energy Agency to monitor the facilities according to the agreement. </span>=
</p>

<p class=3DMsoNormal><span lang=3DEN-NZ><span
style=3D'mso-spacerun:yes'>&nbsp;</span>Taking into consideration the fact =
that
the DPRK was supposed to suspend the operation of its nuclear facilities fr=
om
the time 50,000 tons of heavy oil has been provided according to the Februa=
ry
13 agreement, this means the DPRK's earlier fulfillment of its promise than
scheduled and a manifestation of its good faith towards the agreement. </sp=
an></p>

<p class=3DMsoNormal><span lang=3DEN-NZ><span
style=3D'mso-spacerun:yes'>&nbsp;</span>The provision of substitute energy
including heavy oil is by no means &quot;aid&quot; in the form of charity b=
ut
compensation for the DPRK's suspension of its nuclear facilities and the
activities of the IAEA in Nyongbyon are not &quot;inspection&quot; but limi=
ted
to verification and monitoring.</span></p>

<div style=3D'mso-element:para-border-div;border:none;border-bottom:solid w=
indowtext 1.0pt;
mso-border-bottom-alt:solid windowtext .5pt;padding:0cm 0cm 1.0pt 0cm'>

<p class=3Dsource><span lang=3DEN-NZ>Source: <a
href=3D"http://www.kcna.co.jp/item/2007/200707/news07/16.htm#1">KCNA, Pyong=
yang,
15 July 2007</a> </span></p>

</div>

<h2><span lang=3DEN-NZ>Spokesman for DPRK Foreign Ministry on Issue of
Implementation of February 13 Agreement </span></h2>

<p class=3DMsoNormal><span lang=3DEN-NZ>Pyongyang, July 6 (KCNA) -- A spoke=
sman for
the DPRK Foreign Ministry gave the following answer to the question put by =
KCNA
Friday as regards the issue of the implementation of the February 13 Agreem=
ent:
</span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ><span
style=3D'mso-spacerun:yes'>&nbsp;</span>After the settlement of the issue o=
f the
remittance of the funds frozen in the Banco Delta Asia in <st1:place w:st=
=3D"on"><st1:State
 w:st=3D"on">Macao</st1:State></st1:place>, the DPRK is implementing its
commitments under the agreement much earlier than the promised time and ord=
er. </span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ><span
style=3D'mso-spacerun:yes'>&nbsp;</span>It was agreed at the six-party talk=
s that
the DPRK would suspend the operation of its nuclear facilities within 30 da=
ys
after the lifting of the financial sanction against it. </span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ><span
style=3D'mso-spacerun:yes'>&nbsp;</span>The delayed remittance of the funds
procrastinated on the start of implementation of the February 13 agreement =
but
the DPRK allowed a delegation of the International Atomic Energy Agency to
visit the DPRK just one day after the completion of the fund remittance
proceeding from a goodwill stand to make up for the loss of time, substanti=
ally
kicking off the process to suspend the operation of its nuclear facilities.=
 </span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ><span
style=3D'mso-spacerun:yes'>&nbsp;</span>The above-said agreement calls for
providing 50,000 tons of heavy oil to the DPRK in the same period, but it w=
as
reported that the shipment of the total quantity is expected to be completed
early in August. </span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ><span
style=3D'mso-spacerun:yes'>&nbsp;</span>Prompted by the desire to facilitat=
e the
process of the six-party talks, the DPRK is now earnestly examining even the
issue of suspending the operation of its nuclear facilities earlier than
expected, that is from the moment the first shipment of heavy oil equivalen=
t to
one-tenth of the total quantity is made, without waiting for the total quan=
tity
of heavy oil to reach its port and making preparations for the job. </span>=
</p>

<p class=3DMsoNormal><span lang=3DEN-NZ><span
style=3D'mso-spacerun:yes'>&nbsp;</span>The parties concerned have already =
been
informed of this. </span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ><span
style=3D'mso-spacerun:yes'>&nbsp;</span>Nevertheless, some elements are now
spreading misinformation that the DPRK is raising a new demand as regards t=
he
implementation of the agreement. This indicates that the forces displeased =
with
the smooth implementation of the agreement are still at work. </span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ><span
style=3D'mso-spacerun:yes'>&nbsp;</span>The agreement should be honored not=
 only
by the DPRK but by all the countries participating in the six-party talks on
the principle &quot;action for action&quot;.</span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ><span
style=3D'mso-spacerun:yes'>&nbsp;</span>Other participating countries are a=
lso
obliged to hasten the preparations for honoring their commitments including
energy aid amounting to 950,000 tons of heavy oil, the remaining quantity t=
o be
provided. </span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ><span
style=3D'mso-spacerun:yes'>&nbsp;</span>It is a stark fact already known to=
 the
world through the agreement that the DPRK cannot unilaterally suspend the
operation of its nuclear facilities unless other participating countries fu=
lfil
their commitments. </span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ><span
style=3D'mso-spacerun:yes'>&nbsp;</span>The DPRK may not trust them if step=
s are
not taken to make political and economic compensation as promised, even aft=
er
it has taken to suspend the operation of its nuclear facilities. In that ca=
se,
the resumption of its nuclear activity will assume legitimate nature.</span=
></p>

<div style=3D'mso-element:para-border-div;border:none;border-bottom:solid w=
indowtext 1.0pt;
mso-border-bottom-alt:solid windowtext .5pt;padding:0cm 0cm 1.0pt 0cm'>

<p class=3Dsource><span lang=3DEN-NZ>Source: <a
href=3D"http://www.kcna.co.jp/item/2007/200707/news07/07.htm#1">KCNA, Pyong=
yang,
6 July 2007</a><b style=3D'mso-bidi-font-weight:normal'><o:p></o:p></b></sp=
an></p>

</div>

<h1 style=3D'margin-left:0cm'><a name=3D3></a><st1:country-region w:st=3D"o=
n"><st1:place
 w:st=3D"on"><span style=3D'mso-bookmark:3'><span lang=3DEN-NZ>U.S.</span><=
/span></st1:place></st1:country-region><span
style=3D'mso-bookmark:3'><span lang=3DEN-NZ> Urged to Prove Its Intention n=
ot to
Mount Nuclear Attack on DPRK</span></span></h1>

<span style=3D'mso-bookmark:3'></span>

<p class=3DMsoNormal><st1:City w:st=3D"on"><span lang=3DEN-NZ>Pyongyang</sp=
an></st1:City><span
lang=3DEN-NZ>, July 14 (KCNA) -- The U.S. should prove its confirmation mad=
e in
the September 19 joint statement adopted at the six-party talks that it has=
 no
nuclear weapons in <st1:place w:st=3D"on"><st1:country-region w:st=3D"on">s=
outh
  Korea</st1:country-region></st1:place> and that it has no intention to at=
tack
or invade the DPRK with nukes or conventional weapons in a verifiable manne=
r to
be quite understandable to others. ..//..</span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>The <st1:country-region w:st=3D"on"=
>U.S.</st1:country-region>
moves to introduce nuclear weapons into <st1:country-region w:st=3D"on">sou=
th
 Korea</st1:country-region> started with its July 15, 1957 declaration that=
 it
would start introducing nuclear weapons into <st1:place w:st=3D"on"><st1:co=
untry-region
 w:st=3D"on">south Korea</st1:country-region></st1:place>. Such moves conti=
nued
even after the conclusion of an international convention banning the
introduction of nuclear weapons to non-nuclear states and zones, the statem=
ent
said, and went on: </span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ><span
style=3D'mso-spacerun:yes'>&nbsp;</span>The <st1:country-region w:st=3D"on"=
>U.S.</st1:country-region>
announced in July, 1992 that it had withdrawn all tactical nuclear weapons =
from
<st1:place w:st=3D"on"><st1:country-region w:st=3D"on">south Korea</st1:cou=
ntry-region></st1:place>.
But it has professed the &quot;NCND policy&quot; which proves that it cannot
but admit the fact that nuclear weapons exist in <st1:place w:st=3D"on"><st=
1:country-region
 w:st=3D"on">south Korea</st1:country-region></st1:place>. </span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ><span
style=3D'mso-spacerun:yes'>&nbsp;</span>It is like a guilty party filing th=
e suit
first that the <st1:country-region w:st=3D"on">U.S.</st1:country-region> is
raising a hue and cry over other's &quot;nuclear issue&quot; and &quot;nucl=
ear
threat&quot; while shelving its criminal introduction of nuclear weapons in=
to <st1:place
w:st=3D"on"><st1:country-region w:st=3D"on">south Korea</st1:country-region=
></st1:place>.
</span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ><span
style=3D'mso-spacerun:yes'>&nbsp;</span>The settlement of the nuclear issue=
 on
the <st1:PlaceName w:st=3D"on">Korean</st1:PlaceName> <st1:PlaceType w:st=
=3D"on">Peninsula</st1:PlaceType>
entirely depends on the <st1:place w:st=3D"on"><st1:country-region w:st=3D"=
on">U.S.</st1:country-region></st1:place>
switchover in its policy toward the DPRK. </span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ><span
style=3D'mso-spacerun:yes'>&nbsp;</span>The <st1:country-region w:st=3D"on"=
>U.S.</st1:country-region>
should stop such a foolish act as threatening the Korean nation with nukes =
and
quit <st1:place w:st=3D"on"><st1:country-region w:st=3D"on">south Korea</st=
1:country-region></st1:place>
taking with it its nuclear war hardware without delay.</span></p>

<div style=3D'mso-element:para-border-div;border:none;border-bottom:solid w=
indowtext 1.0pt;
mso-border-bottom-alt:solid windowtext .5pt;padding:0cm 0cm 1.0pt 0cm'>

<p class=3Dsource><span lang=3DEN-NZ>Source<a
href=3D"http://www.kcna.co.jp/item/2007/200707/news07/16.htm#3">: KCNA,
Pyongyang, 14 July 2007</a> </span></p>

</div>

<h2><span lang=3DEN-NZ>Moving beyond the shutdown of the Yongbyon reactor</=
span></h2>

<p class=3DMsoNormal><i style=3D'mso-bidi-font-style:normal'><span lang=3DE=
N-NZ
style=3D'font-size:9.0pt'>By Selig S. Harrison, Director of the <st1:place =
w:st=3D"on">Asia</st1:place>
Program at the Center for International Policy<o:p></o:p></span></i></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>Getting <st1:country-region w:st=3D=
"on">North
 Korea</st1:country-region> to suspend the operation of its Yongbyon reacto=
r is
the easy part of the nuclear negotiations with <st1:place w:st=3D"on"><st1:=
City
 w:st=3D"on">Pyongyang</st1:City></st1:place>. Ever since the start of the
six-party process in August 2003, North Korea has repeatedly offered another
freeze, only to be consistently rebuffed until the Bush Administration reve=
rsed
its position in the February 13 Beijing agreement. </span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>Now comes the hard part of the
negotiations. <st1:City w:st=3D"on">Pyongyang</st1:City> is not likely to t=
ake
any of the further denuclearization steps envisaged in the agreement unless=
 the
<st1:country-region w:st=3D"on">United States</st1:country-region> reciproc=
ates
with step-by-step moves toward the normalization of relations, starting with
the removal of <st1:country-region w:st=3D"on"><st1:place w:st=3D"on">North=
 Korea</st1:place></st1:country-region>
from the State Department&#8217;s list of terrorist states. </span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>Removal from the terrorist list is =
the
essential prerequisite for moving toward <st1:country-region w:st=3D"on"><s=
t1:place
 w:st=3D"on">North Korea</st1:place></st1:country-region>&#8217;s membershi=
p in
the World Bank, the International Monetary Fund and the Asian Development B=
ank.
This would set the stage for the large-scale economic assistance needed to
modernize the North Korean economic infrastructure. </span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>The <st1:country-region w:st=3D"on"=
>United
 States</st1:country-region> is ready to take <st1:country-region w:st=3D"o=
n">North
 Korea</st1:country-region> off the terrorist list, but <st1:country-region
w:st=3D"on"><st1:place w:st=3D"on">Japan</st1:place></st1:country-region> i=
nsists
that the abductee issue must be settled first on Japanese terms. The Shinzo=
 Abe
government is in no hurry to see the nuclear issue resolved because demoniz=
ing <st1:country-region
w:st=3D"on"><st1:place w:st=3D"on">North Korea</st1:place></st1:country-reg=
ion>
helps to build support for a Japanese nuclear weapons program. ..//..</span=
></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>The agreement promises an overall t=
otal of
one million tons of fuel oil, but does not specify when this will be suppli=
ed
and does not link the fuel oil flow to specific steps by <st1:country-region
w:st=3D"on"><st1:place w:st=3D"on">North Korea</st1:place></st1:country-reg=
ion>.
The next North Korean step stipulated in the agreement is
&#8220;disabling&#8221; the reactor, and a North Korean source said that <s=
t1:City
w:st=3D"on"><st1:place w:st=3D"on">Pyongyang</st1:place></st1:City> expects
disbursement of the entire one million tons to be completed &#8220;in
conjunction with the disablement process.&#8221; </span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>Hard-line critics of the agreement =
in <st1:State
w:st=3D"on">Washington</st1:State> want the Bush Administration to focus no=
t on
disablement of the aging Yongbyon reactor but on <st1:country-region w:st=
=3D"on"><st1:place
 w:st=3D"on">North Korea</st1:place></st1:country-region>&#8217;s commitmen=
t to
provide an itemized list of all of its nuclear facilities. Former
Undersecretary of State John Bolton urged the Administration in a July 3 Wa=
ll
Street Journal article not to provide the one million tons of fuel oil or o=
ther
energy aid until Pyongyang complies with the &#8220;central terms of the
February 13 agreement, namely the full disclosure and elimination of all ot=
her
nuclear activities outside of Yongbyon,&#8221; including plutonium extracte=
d from
the spent fuel rods at Yongbyon, weapons fabricated with that plutonium and=
 the
&#8220;full extent&#8221; of its alleged uranium enrichment activities. </s=
pan></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>Secretary of State Condoleeza Rice =
gave
priority to disabling the reactor in a June 28 statement in which she urged
&#8220;rapid progress&#8221; in carrying out the agreement. But <st1:countr=
y-region
w:st=3D"on"><st1:place w:st=3D"on">North Korea</st1:place></st1:country-reg=
ion>,
signaling that progress could well be tortuous, has suggested that the
disablement process will be stretched out in stages after agreement is reac=
hed
with the International Atomic Energy Agency on what will be done in each st=
age.
<st1:City w:st=3D"on">Pyongyang</st1:City> clearly intends to use slice-by-=
slice
&#8220;salami tactics&#8221; to keep the process going in order to maximize=
 <st1:country-region
w:st=3D"on"><st1:place w:st=3D"on">U.S.</st1:place></st1:country-region>
concessions. </span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>Since a quick resolution of the ter=
rorist
list issue is unlikely, my view is that the best and perhaps the only way to
get <st1:country-region w:st=3D"on"><st1:place w:st=3D"on">North Korea</st1=
:place></st1:country-region>
to go beyond disablement of the Yongbyon reactor would be to go beyond fuel=
 oil
deliveries and move steadily ahead with other large-scale energy aid. In
addition to keeping the full one million tons flowing, a major additional
program should be developed and financed by South Korea, China, Russia, Jap=
an
and the United States to rehabilitate and modernize North Korean coal mines=
 and
related transportation facilities. ..//..</span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>To be sure, <st1:City w:st=3D"on"><=
st1:place
 w:st=3D"on">Pyongyang</st1:place></st1:City>&#8217;s preference would be f=
or
light water nuclear reactors for electric power generation because it has
indigenous uranium reserves and would not have to rely on external sources =
for
low-enriched uranium (LEU) reactor fuel if it can make its own LEU. Is <st1=
:country-region
w:st=3D"on">South Korea</st1:country-region> ready to resurrect the Korean =
Energy
Development Organization&#8217;s light water reactor program in some form
despite <st1:country-region w:st=3D"on"><st1:place w:st=3D"on">US</st1:plac=
e></st1:country-region>
opposition? If not, a coal modernization program should be given priority by
the Energy Working Group envisaged under the February 13 agreement.</span><=
/p>

<div style=3D'mso-element:para-border-div;border:none;border-bottom:solid w=
indowtext 1.0pt;
mso-border-bottom-alt:solid windowtext .5pt;padding:0cm 0cm 1.0pt 0cm'>

<p class=3Dsource><span lang=3DEN-NZ>Source: <a
href=3D"http://english.hani.co.kr/arti/english_edition/e_editorial/223184.h=
tml">Hankyoreh,
Seoul, 18 July 2007</a></span></p>

</div>

<h1 style=3D'margin-left:0cm'><span lang=3DEN-NZ>Five Years Later in <st1:c=
ountry-region
w:st=3D"on"><st1:place w:st=3D"on">North Korea</st1:place></st1:country-reg=
ion> </span></h1>

<p class=3DMsoNormal><st1:country-region w:st=3D"on"><span lang=3DEN-NZ>Nor=
th Korea</span></st1:country-region><span
lang=3DEN-NZ>&#8217;s decision to shut down its plutonium-producing reactor=
 and
admit international inspectors was only the first of several steps it needs=
 to
take under the deal it made with the <st1:country-region w:st=3D"on"><st1:p=
lace
 w:st=3D"on">United States</st1:place></st1:country-region> and five other
countries in February. But that initial progress, confirmed officially
yesterday, shows that real nonproliferation diplomacy can produce real resu=
lts.
</span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>These two steps are also important =
in
themselves, since they freeze <st1:country-region w:st=3D"on"><st1:place w:=
st=3D"on">North
  Korea</st1:place></st1:country-region>&#8217;s production of the plutoniu=
m it
could use to build more bombs for itself or help another nation or terrorist
group achieve nuclear weapons status. </span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>For more than four years, the Bush
administration preferred empty, ideological posturing to pragmatic deal-mak=
ing,
with disastrous results. <st1:country-region w:st=3D"on"><st1:place w:st=3D=
"on">North
  Korea</st1:place></st1:country-region> used the interval to extract enough
plutonium to build six nuclear bombs, capped by a nuclear bomb test last
October. </span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>Such an embarrassing outcome for the
hard-line tactics favored by Vice President Dick Cheney created enough of an
opening for Assistant Secretary of State Christopher Hill to negotiate the
agreement that led to this weekend&#8217;s shutdown.</span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>The next steps <st1:country-region =
w:st=3D"on"><st1:place
 w:st=3D"on">North Korea</st1:place></st1:country-region> needs to take inc=
lude
permanently disabling the plutonium reactor and providing a complete invent=
ory
of all its remaining nuclear weapons. </span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>The February agreement also commits=
 <st1:country-region
w:st=3D"on"><st1:place w:st=3D"on">North Korea</st1:place></st1:country-reg=
ion> to
eventually eliminate those nuclear assets, but a timetable for doing that s=
till
has not been negotiated.</span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>Those commitments go well beyond the
requirement of the 1994 deal negotiated by the <st1:City w:st=3D"on"><st1:p=
lace
 w:st=3D"on">Clinton</st1:place></st1:City> administration, inherited by Mr=
. Bush
when he took office. That earlier agreement also froze plutonium production=
 at
the reactor and admitted inspectors from the International Atomic Energy
Agency, the same two steps taken last weekend. </span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>But the Bush administration walked =
away
from Mr. Clinton&#8217;s deal in 2002, with sensational charges, from which=
 it
has since retreated, that <st1:country-region w:st=3D"on"><st1:place w:st=
=3D"on">North
  Korea</st1:place></st1:country-region> was pursuing a second, secret
bomb-making program based on uranium enrichment. </span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>The ground lost over the intervenin=
g years
has now been largely recovered, except, of course for the six bombs&#8217;
worth of nuclear fuel <st1:City w:st=3D"on">Pyongyang</st1:City> produced w=
hile <st1:State
w:st=3D"on"><st1:place w:st=3D"on">Washington</st1:place></st1:State> strut=
ted and
postured. </span></p>

<div style=3D'mso-element:para-border-div;border:none;border-bottom:solid w=
indowtext 1.0pt;
mso-border-bottom-alt:solid windowtext .5pt;padding:0cm 0cm 1.0pt 0cm'>

<p class=3Dsource><span lang=3DEN-NZ>Source: <a
href=3D"http://www.nytimes.com/2007/07/17/opinion/17tue2.html?_r=3D1&amp;or=
ef=3Dslogin">Editorial
New York Times, 17 July 2007</a></span></p>

</div>

<h2><st1:country-region w:st=3D"on"><span lang=3DEN-NZ>U.S.</span></st1:cou=
ntry-region><span
lang=3DEN-NZ> to Announce Nuclear Exception for <st1:place w:st=3D"on"><st1=
:country-region
 w:st=3D"on">India</st1:country-region></st1:place> </span></h2>

<p class=3DMsoNormal><i style=3D'mso-bidi-font-style:normal'><span lang=3DE=
N-NZ
style=3D'font-size:9.0pt'>By David E. Sanger<o:p></o:p></span></i></p>

<p class=3DMsoNormal><st1:State w:st=3D"on"><span lang=3DEN-NZ>WASHINGTON</=
span></st1:State><span
lang=3DEN-NZ>, July 26 &#8212; Three years after President Bush urged global
rules to stop additional nations from making nuclear fuel, the White House =
will
announce on Friday that it is carving out an exception for <st1:place w:st=
=3D"on"><st1:country-region
 w:st=3D"on">India</st1:country-region></st1:place>, in a last-ditch effort=
 to
seal a civilian nuclear deal between the countries.</span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>The scheduled announcement, describ=
ed
Thursday by senior American officials, follows more than a year of negotiat=
ions
intended to keep an unusual arrangement between the countries from being
defeated in <st1:place w:st=3D"on"><st1:City w:st=3D"on">New Delhi</st1:Cit=
y></st1:place>.</span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>Until the overall deal was approved=
 by
Congress last year, the <st1:country-region w:st=3D"on">United States</st1:=
country-region>
was prohibited by federal law from selling civilian nuclear technology to <=
st1:place
w:st=3D"on"><st1:country-region w:st=3D"on">India</st1:country-region></st1=
:place>
because it has refused to sign the Nuclear Nonproliferation Treaty. ..//.. =
</span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>The problem is a delicate one for t=
he
administration, because this month American officials are working at the Un=
ited
Nations Security Council to win approval of harsher economic sanctions agai=
nst <st1:country-region
w:st=3D"on"><st1:place w:st=3D"on">Iran</st1:place></st1:country-region> fo=
r trying
to enrich uranium. <st1:country-region w:st=3D"on">India</st1:country-regio=
n> is
already a nuclear weapons state and has refused to sign the treaty; <st1:pl=
ace
w:st=3D"on"><st1:country-region w:st=3D"on">Iran</st1:country-region></st1:=
place>,
a signer of the treaty, does not yet have nuclear weapons. ..//..</span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>Because <st1:country-region w:st=3D=
"on"><st1:place
 w:st=3D"on">India</st1:place></st1:country-region> never signed the treaty=
, it
too was considered a nuclear outlaw for decades. But Mr. Bush, eager to pla=
ce
relations with <st1:place w:st=3D"on"><st1:country-region w:st=3D"on">India=
</st1:country-region></st1:place>
on a new footing, waived many of the restrictions in order to sign the init=
ial
deal. It was heavily supported by Indian-Americans and American nuclear
equipment companies, which see a huge potential market for their reactors a=
nd
expertise.</span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>Representative Edward J. Markey, a
Massachusetts Democrat who opposed the initial deal and said he would try to
defeat the new arrangement, said Thursday, &#8220;If you make an exception =
for
India, we will be preaching from a barstool to the rest of the world.&#8221=
; </span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>Though India would be prohibited fr=
om using
the fuel it purchases from the United States for nuclear weapons, the abili=
ty
to reprocess the fuel means India&#8217;s other supplies would be freed up =
to
expand its arsenal.</span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>&#8220;It creates a double standard=
,&#8221;
Mr. Markey said. &#8220;One set of rules for countries we like, another for
countries we don&#8217;t.&#8221;</span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>Robert J. Einhorn, a scholar at the=
 Center
for Strategic and International Studies, said that in &#8220;the first phas=
e of
negotiations with <st1:place w:st=3D"on"><st1:country-region w:st=3D"on">In=
dia</st1:country-region></st1:place>,
the administration made concessions that put the country on par with countr=
ies
that have signed&#8221; the Nonproliferation Treaty. (<st1:country-region
w:st=3D"on">Israel</st1:country-region> and <st1:country-region w:st=3D"on"=
>Pakistan</st1:country-region>
are the only other countries that have refused to sign it, and <st1:place
w:st=3D"on"><st1:country-region w:st=3D"on">North Korea</st1:country-region=
></st1:place>
quit the treaty four years ago.)</span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>&#8220;Now we&#8217;ve gone beyond =
that,
and given <st1:country-region w:st=3D"on">India</st1:country-region> someth=
ing
that we don&#8217;t give to <st1:country-region w:st=3D"on">Russia</st1:cou=
ntry-region>
and <st1:place w:st=3D"on"><st1:country-region w:st=3D"on"><st1:country-reg=
ion
  w:st=3D"on">China</st1:country-region>.</st1:country-region></st1:place>&=
#8221;..//..</span></p>

<div style=3D'mso-element:para-border-div;border:none;border-bottom:solid w=
indowtext 1.0pt;
mso-border-bottom-alt:solid windowtext .5pt;padding:0cm 0cm 1.0pt 0cm'>

<p class=3Dsource><span lang=3DEN-NZ>Source<a
href=3D"http://www.nytimes.com/2007/07/27/washington/27india.html?_r=3D2&am=
p;hp=3D&amp;adxnnl=3D1&amp;oref=3Dslogin&amp;adxnnlx=3D1185577437-9ihzX0Eee=
AU1fba31VYXiQ">:
New York Times, 27 July, 2007</a></span></p>

</div>

<h1 style=3D'margin-left:0cm'><span lang=3DEN-NZ>NK Wants to Join IMF, Worl=
d Bank</span></h1>

<p class=3DMsoNormal><i style=3D'mso-bidi-font-style:normal'><span lang=3DE=
N-NZ
style=3D'font-size:9.0pt'>By Kim Yon-se<o:p></o:p></span></i></p>

<p class=3DMsoNormal><st1:country-region w:st=3D"on"><span lang=3DEN-NZ>Sou=
th Korea</span></st1:country-region><span
lang=3DEN-NZ> has expressed its willingness to back <st1:place w:st=3D"on">=
<st1:country-region
 w:st=3D"on">North Korea</st1:country-region></st1:place>'s move to join the
International Monetary Fund (IMF) and the World Bank.</span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>At a news briefing in <st1:City w:s=
t=3D"on">Seoul</st1:City>
Sunday, five lawmakers from the Uri Party, who visited <st1:place w:st=3D"o=
n"><st1:City
 w:st=3D"on">Pyongyang</st1:City></st1:place> for four days from May 2, sai=
d the
North is considering applying for membership of the Washington-based World =
Bank
and the IMF.</span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>``We've promised to help North Kore=
a become
a member of international organizations,'' said Rep. Kim Jong-yull who met
North Korean leaders, including Kim Yong-nam, chairman of the Presidium of =
the
Supreme People's Assembly.</span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>The <st1:country-region w:st=3D"on"=
>United
 States</st1:country-region> and several developed countries have shown a
lukewarm attitude over <st1:place w:st=3D"on"><st1:country-region w:st=3D"o=
n">North
  Korea</st1:country-region></st1:place>'s entry into international
organizations, including the Asian Development Bank (ADB).</span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>According to South Korean government
officials, the U.S. _ a major shareholder in the IMF, World Bank and ADB _ =
has
played a major role in rejecting Pyongyang's repeated applications for
admission, demanding the disposal of nuclear facilities.</span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>The five lawmakers of the Uri Party=
 and the
North's leaders also discussed ways to create a joint peace zone at the mou=
th
of the Han, Imjin and Yeseong rivers.</span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>According to the lawmakers, <st1:co=
untry-region
w:st=3D"on">North Korea</st1:country-region> reiterated its willingness to
normalize diplomatic ties with the <st1:place w:st=3D"on"><st1:country-regi=
on
 w:st=3D"on">United States</st1:country-region></st1:place>. The North Kore=
an
authorities want their willingness to be conveyed to President Roh Moo-hyun=
 and
Washington, said Rep. Kim Hyuk-kyu, chief of the delegation.</span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>He also said the two <st1:country-r=
egion
w:st=3D"on">Koreas</st1:country-region> have shared a consensus on the need=
 to
launch an inter-Korean agency to build a waterway between <st1:place w:st=
=3D"on"><st1:City
 w:st=3D"on">Seoul</st1:City></st1:place> and Gaesong, and an ecology park,=
 and
to open border rivers along the Demilitarized Zone for joint development and
utilization.</span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>They also discussed the development=
 of a
joint special economic zone, named the New Yellow Sea Joint Special Economic
Zone. <st1:place w:st=3D"on"><st1:City w:st=3D"on">Seoul</st1:City></st1:pl=
ace>
also promised to help the North develop a heavy industrial complex near Hae=
ju.
The two sides also agreed to jointly develop coalmining in Dancheon, <st1:p=
lace
w:st=3D"on"><st1:City w:st=3D"on">South Hamgyeong Province</st1:City>, <st1=
:country-region
 w:st=3D"on">North Korea</st1:country-region></st1:place>.</span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>The two sides also discussed sports
exchanges for national reconciliation and a joint team for the 2008 Beijing
Olympics. The North will consider allowing its soccer players to join in
K-League matches in the South, he added.</span></p>

<div style=3D'mso-element:para-border-div;border:none;border-bottom:solid w=
indowtext 1.0pt;
mso-border-bottom-alt:solid windowtext .5pt;padding:0cm 0cm 1.0pt 0cm'>

<p class=3Dsource><span lang=3DEN-NZ>Source: <a
href=3D"http://www.koreatimes.co.kr/www/news/nation/2007/05/116_2403.html">=
Korea
Times, Seoul, 6 May 2007</a></span></p>

</div>

<h2><span lang=3DEN-NZ>Agency to seek KAL bombing truth</span></h2>

<p class=3DMsoNormal><i style=3D'mso-bidi-font-style:normal'><span lang=3DE=
N-NZ
style=3D'font-size:9.0pt'>By Ser Myo-ja<o:p></o:p></span></i></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>The truth commission said yesterday=
 it will
reinvestigate two of the defining moments of <st1:country-region w:st=3D"on=
">Korea</st1:country-region>&#8217;s
modern history: the 1987 Korean Air bombing by <st1:country-region w:st=3D"=
on"><st1:place
 w:st=3D"on">North Korea</st1:place></st1:country-region> and the 1974
assassination of First Lady Yuk Young-soo.</span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>The organization, formally known as=
 the
Truth and Reconciliation Commission, issued a press release yesterday and s=
aid
its members will try to answer unresolved questions, including whether the
South Korean spy agency was involved in the explosion of Korean Air Flight =
858
over the waters near <st1:place w:st=3D"on"><st1:country-region w:st=3D"on"=
>Myanmar</st1:country-region></st1:place>.
</span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>On Nov. 28, 1987, the flight left <=
st1:City
w:st=3D"on">Baghdad</st1:City>, <st1:country-region w:st=3D"on">Iraq</st1:c=
ountry-region>,
for <st1:City w:st=3D"on">Seoul</st1:City> via to <st1:City w:st=3D"on">Abu=
 Dhabi</st1:City>
and <st1:place w:st=3D"on"><st1:City w:st=3D"on">Bangkok</st1:City></st1:pl=
ace>.
The explosion killed all 115 passengers and crew aboard. </span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>At the time, the investigative auth=
orities
announced that two North Korean agents were responsible for the act, ordere=
d by
Kim Jong-il in an attempt to undermine <st1:place w:st=3D"on"><st1:country-=
region
 w:st=3D"on">South Korea</st1:country-region></st1:place>&#8217;s 1988 Olym=
pics
bid.</span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>The National Intelligence Service
reinvestigated the case in December 2005, and announced in 2006 that the Ch=
un
Doo Hwan regime had used the incident to help get Roh Tae-woo elected as hi=
s successor
by stoking North Korean fears. </span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>The spy agency, however, did not in=
terview
Kim Hyon-hui and other intelligence officials of the time. Seventy-two memb=
ers
of the victims&#8217; families filed a petition to the truth commission in
November of last year.</span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>The commission said it will focus on
whether the nation&#8217;s main spy agency at the time had known about or t=
aken
part in the incident.</span></p>

<div style=3D'mso-element:para-border-div;border:none;border-bottom:solid w=
indowtext 1.0pt;
mso-border-bottom-alt:solid windowtext .5pt;padding:0cm 0cm 1.0pt 0cm'>

<p class=3Dsource><span lang=3DEN-NZ>Source: <a
href=3D"http://joongangdaily.joins.com/article/view.asp?aid=3D2877940">Joon=
gAng
Ilbo, Seoul, 12 July 2007</a></span></p>

</div>

<h1 style=3D'margin-left:0cm'><span lang=3DEN-NZ>KAL 858 bombing investigat=
ion
launches again</span></h1>

<p class=3DMsoNormal><span lang=3DEN-NZ>Inquiry initiated by victims&#8217;=
 families
looks at <st1:place w:st=3D"on"><st1:City w:st=3D"on">NIS</st1:City></st1:p=
lace>
involvement</span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>The Truth and Reconciliation Commis=
sion,
headed by Father Song Ki-in, announced on July 11 that it has launched an
investigation into the KAL 858 bombing which took place just a month ahead =
of
the 1987 presidential election. The investigation was launched at the reque=
st
of 73 of the victims&#8217; family members. </span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>Korean Air Flight 858, with 115 peo=
ple on
board and bound for Seoul from Abu Dhabi, disappeared off the radar over the
Indian Ocean off Myanmar on November 29, 1987. Later, <st1:country-region
w:st=3D"on"><st1:place w:st=3D"on">Korea</st1:place></st1:country-region>&#=
8217;s
spy agency which at the time was known as the Korean Agency for National
Security Planning announced that the flight had exploded mid-air, due to
explosives planted in the cabin of the plane by North Korean agents. A few =
days
prior to this annoucement, the agency had arrested a woman called Kim Hyun-=
hee,
or Mayumi, as one of two suspects in Barain and brought her to <st1:City w:=
st=3D"on"><st1:place
 w:st=3D"on">Seoul</st1:place></st1:City>. The spy agency said that Kim had
staged the bombing under North Korean orders in order to hinder the 1988 Se=
oul
Olympics. </span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>The bombing was cited as one of the=
 main
reasons that the candidate of the ruling conservative party, established by=
 the
military dictator Chun Doo-hwan, won the presidential election, as it stirr=
ed
public opinion toward the conservative party. </span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>But suspicions around the bombing h=
ave
continued to linger, especially due to the fact that no remains from the fl=
ight
have ever been discovered. Some families of the victims have also indicated
that certain &#8220;facts&#8221; in the investigative report authored by the
spy agency contradicted the facts around the bombing. </span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>Kim admitted to the crime and was s=
entenced
to death in a court before Roh Tae-woo, Chun&#8217;s successor and the
candidate who was elected a month after the bombing, granted her a pardon. =
She
later married one of the man from the spy agency that investigated her. </s=
pan></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>According to the commission, in the=
 process
of investigating the bombing in 2005, the National Intelligence Service (NI=
S)
Development Committee for Clarifying the Past could not solve growing doubts
about the case by exempting former North Korean agent Kim Hyun-hee and core
officials of the <st1:City w:st=3D"on"><st1:place w:st=3D"on">NIS</st1:plac=
e></st1:City>
from the investigation. </span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>The <st1:City w:st=3D"on"><st1:plac=
e w:st=3D"on">NIS</st1:place></st1:City>
committee in 2005 said that the so-called &#8220;Rainbow Operation&#8221; h=
ad
used the bombing as a means to elect the ruling party&#8217;s candidate in =
the
presidential election which was held just a month after the bombing. </span=
></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>The Truth and Reconciliation Commis=
sion,
however, now feels it is necessary to conduct an in-depth investigation on
allegations surrounding the <st1:City w:st=3D"on"><st1:place w:st=3D"on">NI=
S</st1:place></st1:City>
and Kim Hyun-hee. The committee wants to clarify whether or not the <st1:Ci=
ty
w:st=3D"on"><st1:place w:st=3D"on">NIS</st1:place></st1:City> had known abo=
ut the
explosion in advance and interfered with the bombing. </span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>The commission has also decided to =
probe
the assassination of former first lady Yook Young-soo, which took place in
1974. Yook, wife of the military dictator Park Chung-hee, was shot dead by =
one
of the participants at the independence day celebration held in a <st1:place
w:st=3D"on"><st1:City w:st=3D"on">Seoul</st1:City></st1:place> building tha=
t year.
The Korea Central Intelligent Agency, then spy agency, later claimed that t=
he
assassin, caught on the spot, had gotten his orders from <st1:country-region
w:st=3D"on"><st1:place w:st=3D"on">North Korea</st1:place></st1:country-reg=
ion>. </span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>&#8220;Suspicions about how the ass=
assin,
Moon Se-kwang, could have participated in the event without an ID card have
been raised time and again. It is imperative that we clarify the truth,&#82=
21;
said a representative from the commission.</span></p>

<div style=3D'mso-element:para-border-div;border:none;border-bottom:solid w=
indowtext 1.0pt;
mso-border-bottom-alt:solid windowtext .5pt;padding:0cm 0cm 1.0pt 0cm'>

<p class=3Dsource><span lang=3DEN-NZ>Source: <a
href=3D"http://english.hani.co.kr/arti/english_edition/e_national/222043.ht=
ml">Hankyoreh,
Seoul, 12 July 2007</a> </span></p>

</div>

<h2><span lang=3DEN-NZ>DPR <st1:place w:st=3D"on"><st1:country-region w:st=
=3D"on">Korea</st1:country-region></st1:place>:
Ban Ki-moon says audit finds no large-scale diversion of funds </span></h2>

<p class=3DMsoNormal><span lang=3DEN-NZ>An external audit of the United
Nations&#8217; activities in the Democratic People&#8217;s Republic of Korea
(DPRK) has found there has been no large-scale or systematic diversion of UN
funds provided by the world body&#8217;s agencies to help in humanitarian
relief efforts, Secretary-General Ban Ki-moon said today. </span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>In a statement released by his
spokesperson, Mr. Ban said the report by the independent UN Board of Audito=
rs
&#8220;does point to some of the difficulties&#8221; that UN agencies have =
had
in operating in the DPRK. </span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>&#8220;On independence of staff hir=
ing,
foreign currency transactions and access to local projects, the report
identifies practices not in keeping with how the UN operates elsewhere in t=
he
world,&#8221; the statement said, adding however that the allegations of
large-scale diversion of funds by the Pyongyang Government were not confirm=
ed. ..//..</span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>After the issue came to light, Mr. =
Ban
promised an external, system-wide probe of UN activities in the field, call=
ing
first for a review of all UN activities, ranging from staff hiring to hard
currency, in the DPRK from 1998 to the present. </span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>&#8220;Today&#8217;s report represe=
nts the
first results of this ongoing effort&#8221; to systematically probe the wor=
ld
body&#8217;s activities in the field, the spokesperson&#8217;s statement sa=
id. </span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>Also responding today, UNDP said th=
at in
spite of the challenging conditions posed by the DPRK, the agency did not
violate its own rules or regulations. </span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>&#8220;Overall, we believe that the=
 audit
report confirms what we have said all along, namely that UNDP had a relativ=
ely
small programme in DPRK and certainly much smaller than the huge figures th=
at
have been circulating,&#8221; with a budget of only $2 million to $3 million
annually as opposed to the hundreds of millions that have been reported, the
agency&#8217;s Director of Communications, David Morrison, told journalists=
 in
New York. </span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>He said that over the past decade, =
UNDP
funds have added up to less than 2 per cent of all development assistance t=
hat
has gone into DPRK and only approximately 0.1 per cent of foreign currency
inflows into the country. </span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>Mr. Morrison also stressed that any
international operation in the DPRK involves payment either in hard currenc=
y or
in local currency. UN agencies, international non-governmental organizations
(NGOs), foreign diplomatic missions and tourists must pay in either hard
currency or the DPRK won, in which case hard currency must be converted at a
bank in the country, with currency entering the country either way. </span>=
</p>

<p class=3DMsoNormal><span lang=3DEN-NZ>Although the audit report contained
findings suggesting that UDNP had made certain payments directly in hard
currency instead of converting it at the local bank and using DPRK currency,
Mr. Morrison pointed out that there are no restrictions on utilization of
foreign money in the agency&#8217;s financial rules and regulations. </span=
></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>Another topic in the Board&#8217;s =
purview
was the hiring of Pyongyang Government employees on secondment from national
ministries as local staff, which, in the DPRK, has &#8220;always been of an
exceptional nature&#8221; and not in strict adherence with its policies in
other countries, Mr. Morrison said. </span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>But these hiring practices have bee=
n in use
for the almost three decades the UNDP has been operational in the DPRK and =
thus
the agency&#8217;s board was well aware of it. Other UN agencies, internati=
onal
NGOs and foreign diplomatic missions in the DPRK employed the same hiring
procedures. ..//..</span></p>

<div style=3D'mso-element:para-border-div;border:none;border-bottom:solid w=
indowtext 1.0pt;
mso-border-bottom-alt:solid windowtext .5pt;padding:0cm 0cm 1.0pt 0cm'>

<p class=3Dsource><span lang=3DEN-NZ>Source: <a
href=3D"http://www.un.org/apps/news/story.asp?NewsID=3D22771&amp;Cr=3DDPRK&=
amp;Cr1=3D&amp;Kw1=3Dkorea&amp;Kw2=3D&amp;Kw3=3D">United
Nations News Centre, 1 June 2007</a> </span></p>

</div>

<h2><span lang=3DEN-NZ>U.N. Development Agency Rebuts <st1:country-region w=
:st=3D"on">U.S.</st1:country-region>
Charges of Wasteful Spending in <st1:place w:st=3D"on"><st1:country-region =
w:st=3D"on">North
  Korea</st1:country-region></st1:place> </span></h2>

<p class=3DMsoNormal><span lang=3DEN-NZ>By Warren Hoge</span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>UNITED NATIONS, June 28 &#8212; The=
 deputy
chief of the United Nations Development Program has shot back at American
accusations that it had squandered millions of dollars in <st1:place w:st=
=3D"on"><st1:country-region
 w:st=3D"on">North Korea</st1:country-region></st1:place>, saying the amoun=
t far
surpassed what the program had at its disposal and questioning the authenti=
city
of documents the American mission provided to back up its claims.</span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>In a confidential letter delivered =
Thursday
evening to Zalmay Khalilzad, the <st1:country-region w:st=3D"on">United Sta=
tes</st1:country-region>
ambassador, the official, Ad Melkert, said the money amounts, vendor names =
and
transaction dates supplied by the <st1:place w:st=3D"on"><st1:country-region
 w:st=3D"on">United States</st1:country-region></st1:place> had been examin=
ed
against his agency&#8217;s records and &#8220;there is not a single
match.&#8221;</span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>He said the volume of payments that=
 the
Americans claimed that the program had made to North Korean government enti=
ties
was &#8220;significantly higher&#8221; than the total that the office had f=
or
all purposes in the country&#8230;//..</span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>The letter is the latest in a serie=
s of
frosty exchanges between Mr. Melkert and American officials in the six mont=
hs
since Mark D. Wallace, the deputy American ambassador for management, accus=
ed
the program of serving as &#8220;a steady and large source of hard
currency&#8221; for the North Korean government.</span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>The program, Mr. Wallace wrote then=
, has
been &#8220;systematically perverted for the benefit of the Kim Jong-il reg=
ime
rather than the people of <st1:country-region w:st=3D"on">North Korea</st1:=
country-region>,&#8221;
and he suggested that the United Nations money might have ended up financin=
g <st1:place
w:st=3D"on"><st1:country-region w:st=3D"on">North Korea</st1:country-region=
></st1:place>&#8217;s
nuclear program.</span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>The new letter was made available b=
y an
official interested in combating the wide attention that the American
allegations had received through briefings by Mr. Wallace for selected news
outlets, editorial writers, members of Congress and nations that finance the
development program&#8230;//..</span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>On June 1 a preliminary United Nati=
ons
audit offered no support for the charge that systematic large-scale diversi=
ons
to the North Korean government had occurred, but it said the program had br=
oken
its own rules by hiring workers selected by the government and paying them =
in
foreign currency.</span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>Then the <st1:place w:st=3D"on"><st=
1:country-region
 w:st=3D"on">United States</st1:country-region></st1:place> raised a series=
 of
new charges, and program officials responded to each point. </span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>To Mr. Wallace&#8217;s charge that =
the
program had transferred $7 million to its counterpart agency in the North
Korean government, the program said that the amount actually had been $175,=
000
and that most of it had gone for workshops on vegetable growing and seed
processing.</span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>The program reiterated the same $17=
5,000
figure in reply to a second allegation: that an additional $2.8 million in
program money had gone to North Korean missions in <st1:State w:st=3D"on">N=
ew
 York</st1:State> and Europe and had been used to purchase buildings and ho=
uses
in <st1:country-region w:st=3D"on">Britain</st1:country-region>, <st1:count=
ry-region
w:st=3D"on">France</st1:country-region> and <st1:place w:st=3D"on"><st1:cou=
ntry-region
 w:st=3D"on">Canada</st1:country-region></st1:place>.</span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>The agency also turned aside Mr.
Wallace&#8217;s accusations that it had procured equipment for <st1:place
w:st=3D"on"><st1:country-region w:st=3D"on">North Korea</st1:country-region=
></st1:place>
that could be put to military use. It said the equipment, which included gl=
obal
positioning systems, personal computers and a portable spectrometer, an opt=
ical
device, had been purchased under a program, common in developing nations, t=
hat
monitors natural disasters and helps to estimate crop yields.</span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>Mr. Melkert also denied that his ag=
ency had
paid $2.7 million to the Zang Lok Trading Company, a banking institution ba=
sed
in <st1:place w:st=3D"on"><st1:State w:st=3D"on">Macao</st1:State></st1:pla=
ce> that
Mr. Wallace said was linked to a North Korean financial agent involved in
weapons sales. </span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>According to banking records, Mr. M=
elkert
said, the development program&#8217;s total payments to Zang Lok from 1999 =
to
the present amount to $52,201.95 and went for workshop equipment and comput=
ers
for Unesco, the United Nations Educational, Scientific and Cultural
Organization, and for the World Intellectual Property Organization. The
development program had no transactions with Zang Lok on its own account, he
said.</span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>Totaling up the charges, Mr. Melker=
t said
in his letter to Mr. Khalilzad that &#8220;the allegation that U.N.D.P.
transferred $15 million in cash to the D.P.R.K. government in the period
2001-2005 is not supported as our banking records show that the country off=
ice
did not have this magnitude of resources at its disposal.&#8221;..//.. </sp=
an></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>Mr. Melkert said that only an avera=
ge of
$2.5 million a year had been available from 2001 to 2005 and that the sum
included all payments made by the country office supporting development pro=
gram
operations and some other United Nations functions.</span></p>

<div style=3D'mso-element:para-border-div;border:none;border-bottom:solid w=
indowtext 1.0pt;
mso-border-bottom-alt:solid windowtext .5pt;padding:0cm 0cm 1.0pt 0cm'>

<p class=3Dsource><span lang=3DEN-NZ>Source: <a
href=3D"http://www.nytimes.com/2007/06/29/world/asia/29nations.html?ex=3D13=
40856000&amp;en=3De121e3eb1e02e1ae&amp;ei=3D5124&amp;partner=3Dpermalink&am=
p;exprod=3Dpermalink">New
York Times, 29 June 2007</a> </span></p>

</div>

<h1 style=3D'margin-left:0cm'><span lang=3DEN-NZ>Teaching, and learning, in=
 <st1:place
w:st=3D"on"><st1:City w:st=3D"on">Pyongyang</st1:City></st1:place></span></=
h1>

<p class=3DMsoNormal><i style=3D'mso-bidi-font-style:normal'><span lang=3DE=
N-NZ>Tim
Kearns is a primary school teacher from <st1:City w:st=3D"on">Christchurch<=
/st1:City>
who recently spent three months teaching in <st1:City w:st=3D"on"><st1:place
 w:st=3D"on">Pyongyang</st1:place></st1:City>.<span
style=3D'mso-spacerun:yes'>&nbsp; </span>It was an interesting and worthwhi=
le
experience, as he recounts, with many surprises.<o:p></o:p></span></i></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>Being asked what one thinks of Geor=
ge W.
Bush is, in our western society, an unusual question. With Bush bashing bei=
ng
de rigueur it&#8217;s a redundant question for most and the answer seems all
too obvious. But how about being asked that same question by a 16 year
old&#8230;&#8230;North Korean&#8230;..in a school in central
Pyongyang&#8230;&#8230;.with an audience of 18 students and 6
teachers&#8230;&#8230;under the gaze of the Great Leader and Dear Leader? <=
/span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>As the first known western foreigne=
r (if
not, foreigner) to teach English, in the school system (outside of universi=
ty)
in the Democratic People&#8217;s Republic of Korea, situations such as this
were unexpected and refreshingly went against the grain of common western
perceptions of the &#8216;Hermit Kingdom.&#8217; It was one of the last que=
stions
I thought I&#8217;d hear in a classroom situation.</span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>I shuffled uncomfortably as the boi=
sterous
roars of laughter rang out from staff and students alike. &#8220;I&#8217;m =
not
really here to answer those kind of questions,&#8221; I replied in an
apolitical, piss-weak kind of way. I joined them in laughter, only too aware
I&#8217;d either avoided an international incident&#8230;&#8230;or, more to=
 the
point, a chance for a great comedic comeback.</span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>My three months in <st1:place w:st=
=3D"on"><st1:City
 w:st=3D"on">Pyongyang</st1:City></st1:place> were spent teaching English at
three middle schools. Middle schools cater for students ranging in age from=
 11
to 16. Initially I was to teach at one school only, the June 9 Daesong Midd=
le
School No. 1, a district middle school and designated New Zealand/DPRK
Friendship School by the NZ/DPRK Friendship Society. When I arrived in <st1=
:City
w:st=3D"on">Pyongyang</st1:City> I was informed that I would also be teachi=
ng at
two of the three elite schools of <st1:country-region w:st=3D"on">Korea</st=
1:country-region>,
<st1:place w:st=3D"on"><st1:PlaceName w:st=3D"on">Kumsong</st1:PlaceName> <=
st1:PlaceType
 w:st=3D"on">College</st1:PlaceType></st1:place> and Kumsong Middle School =
No. 1.
</span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>My brief was to follow the set curr=
iculum,
in the younger grades, in my own style, while teaching my own curriculum to=
 the
older students, mainly in order to boost conversation skills. I was encoura=
ged
to &#8216;swing from the chandeliers,&#8217; to do things my own way, and to
provide practical ideas for teachers of English. This was all a great surpr=
ise.
My expectation was that I would have to adopt the formal, lecture style of =
the
traditional classroom and that I would have to be extremely cautious with h=
ow I
presented information &#8211; God forbid I use any imperialist Americanisms.
While at times I may have been na&iuml;ve in what I said, I also know I
wasn&#8217;t stupid. Put simply it was all about showing your hosts respect=
. I
was able to relax (as much as I possibly could) and enjoy teaching my
way&#8230;.that of a <st1:place w:st=3D"on"><st1:country-region w:st=3D"on"=
>New
  Zealand</st1:country-region></st1:place> primary school teacher. </span><=
/p>

<p class=3DMsoNormal><span lang=3DEN-NZ>The English speaking level of the s=
tudents
at the two elite schools took me aback. For such a reclusive, isolated nati=
on
with very few westerners in their midst, the level of English would shame a=
 few
native speakers. Their teachers were trained at <st1:place w:st=3D"on"><st1=
:PlaceName
 w:st=3D"on">Kim</st1:PlaceName> <st1:PlaceName w:st=3D"on">Il</st1:PlaceNa=
me> <st1:PlaceName
 w:st=3D"on">Sung</st1:PlaceName> <st1:PlaceType w:st=3D"on">University</st=
1:PlaceType></st1:place>
and The Pyongyang Foreign Languages University and their knowledge, as well=
 as
their passion for teaching English was truly remarkable. Their hunger for
knowledge at times left me &#8216;stripped bare,&#8217; and I often felt li=
ke
Ringling Brother&#8217;s Circus as up to 15 teachers would squeeze impossib=
ly
into a gap at the back of the classroom to view my &#8216;act.&#8217; </spa=
n></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>Perhaps the biggest challenge was g=
etting
the 15 and 16 year old students to have meaningful conversations in English.
Not an easy task and something the Korean teachers seemed to think I&#8217;d
achieve yesterday! One successful method was what I labelled the
&#8216;simulation exercise.&#8217; It was where I provided a scenario for t=
he
students to discuss in small groups then share back with the whole class,
hopefully stimulating some debate. One of these exercises involved the stud=
ents
choosing four (imaginary) people, from a list of about 16, to rescue from a
sinking ship and share their life raft. I had drafted up profiles for each
person and there were a number of conditions to adhere to. My aforementioned
naivety had me present, as one of the imaginary people, a 70 year old
millionairess. It didn&#8217;t strike me until well into the first lesson (I
had to present the same lesson to at least 4 classes) that the millionairess
may be frowned upon &#8211; a person who represents western materialism and
stands in contrast to the socialist ethic. </span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>There was some tremendous discussio=
n and
debate about who should be chosen for the life boat. The 42 year old police=
man?
The 37 year old chef? The famous opera singer (chosen by several groups for
morale!)? The former heavyweight champion boxer? And so on. It wasn&#8217;t
until the fourth class, which contained some hard case characters, and
particularly strong English speakers, that the unexpected happened. To great
hoots of laughter, again from staff and students, one group chose the
millionairess after I had long forgotten her &#8216;existence&#8217; in this
exercise. Their argument? &#8220;That we might sail towards the <st1:PlaceT=
ype
w:st=3D"on">land</st1:PlaceType> of <st1:PlaceName w:st=3D"on">New Zealand<=
/st1:PlaceName>,
in which case we would need a lot of money to buy food and clothes, then an=
 air
ticket back to <st1:country-region w:st=3D"on"><st1:place w:st=3D"on">Korea=
</st1:place></st1:country-region>.&#8221;
In my teacher evaluation I wrote, &#8220;Keep the millionairess.&#8221;</sp=
an></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>The younger students were a great m=
ix of
wariness and unbridled enthusiasm. Looking resplendent in their white shirts
and communist sash they would rise with military precision when I entered t=
he
room, and exclaim a hearty, &#8220;GOOD MORNING, SIR!&#8221; The first time=
 I
stepped into the junior classrooms it seemed I was cast as the &#8216;big-n=
osed
white devil&#8217; in their midst. I&#8217;d like to think that the devil p=
art
of that myth was soon eradicated. The photo sessions (cameras always appear=
ed
as I was nearing the end of my time with particular classes) I had with the
younger boys ended up being a scramble as they raced to either link arms wi=
th
or be closest to the foreigner.</span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>Just as I thought I was establishin=
g myself
as a C-grade celebrity in <st1:place w:st=3D"on"><st1:City w:st=3D"on">Pyon=
gyang</st1:City></st1:place>
it seemed that the younger students of Kumsong Middle School No. 1 had
scuppered my meteoric rise. I had been teaching them about Maori folk hero,=
 <st1:place
w:st=3D"on">Maui</st1:place>, and how he had harnessed the sun so the Maori
people wouldn&#8217;t have to live in darkness. I read the story to them, a=
nd
then wrote it in script form for them to act out in small groups. The stude=
nts
decided that they wanted to be as authentic as possible in their portrayal =
of
the Maui story as I was to find out at a banquet put on for me by the hiera=
rchy
of <st1:place w:st=3D"on"><st1:PlaceName w:st=3D"on">Kumsong</st1:PlaceName=
> <st1:PlaceType
 w:st=3D"on">Middle School</st1:PlaceType></st1:place>. Sitting politely wi=
th the
Principal, Deputy Principal and a couple of party officials, I heard that t=
he
school was facing a minor environmental disaster. The Principal had earlier
stopped his car to ask some boys why they were tearing out the foliage arou=
nd
the school. &#8220;We are doing a play for Mr. Tim Kearns and we are making=
 our
costumes,&#8221; came the reply. As I sank in my seat the men all erupted w=
ith
laughter and my glass filled with vodka. The school were a few trees short,=
 but
those grass skirts and head bands looked mighty fine under the stage lights.
And it wasn&#8217;t a problem.</span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>Socially the teachers were full of =
fun and
good humour. I had suggested at one of the teacher meetings that it is good=
 for
teachers to socialise and plan together over a coffee or a beer. The Koreans
loved this idea and it ended up becoming a weekly (sometimes daily) event. =
At
these times there would be intense educational discussion, a lot of questio=
ns
about NZ education and society, regular eulogising about what a great job t=
hey
thought I was doing and me replying with what a great job they&#8217;re doi=
ng
(a Korean thing), and outright good humour. I found that they appreciated
frankness, and, it never hurt that one had studied a little Korean history =
for
good measure. So, we covered a multitude of diverse subjects, from the NZ
English curriculum to club sandwiches (as in, what it is) to the history of=
 <st1:City
w:st=3D"on"><st1:place w:st=3D"on">Christchurch</st1:place></st1:City> and =
lots of
points in between. I often had to pinch myself that I was in this situation=
. </span></p>

<p class=3DMsoNormal><span lang=3DEN-NZ>If you work hard for the Koreans an=
d are
seen to be giving your best, they return in kind with great hospitality, wa=
rm
generosity, and, most of all, a gaining of their trust&#8230;//..</span></p>

<p class=3DMsoNormal style=3D'tab-stops:2.0cm'><b style=3D'mso-bidi-font-we=
ight:normal'><span
lang=3DEN-NZ style=3D'font-size:9.0pt'><span style=3D'mso-spacerun:yes'>&nb=
sp;</span>[Our
next issue will feature a report by Peter Wilson on the donation of a tract=
or
and small truck to the NZ &#8211;<st1:country-region w:st=3D"on">Korea</st1=
:country-region>
Friendship Farm outside <st1:City w:st=3D"on"><st1:place w:st=3D"on">Pyongy=
ang</st1:place></st1:City>]</span><span
lang=3DEN-NZ><o:p></o:p></span></b></p>

</div>

<b style=3D'mso-bidi-font-weight:normal'><span lang=3DEN-NZ style=3D'font-s=
ize:10.0pt;
font-family:"Times New Roman";mso-fareast-font-family:"Times New Roman";
mso-ansi-language:EN-NZ;mso-fareast-language:EN-US;mso-bidi-language:AR-SA'=
><br
clear=3Dall style=3D'page-break-before:auto;mso-break-type:section-break'>
</span></b>

<div class=3DSection4>

<p class=3DMsoNormal style=3D'tab-stops:2.0cm'><!--[if gte vml 1]><v:line i=
d=3D"_x0000_s1033"
 style=3D'position:absolute;left:0;text-align:left;z-index:1' from=3D"4.05p=
t,10.25pt"
 to=3D"460.35pt,10.25pt" o:allowincell=3D"f" strokeweight=3D"4.5pt">
 <v:stroke linestyle=3D"thickThin"/>
</v:line><![endif]--><![if !vml]><span style=3D'mso-ignore:vglayout'>

<table cellpadding=3D0 cellspacing=3D0 align=3Dleft>
 <tr>
  <td width=3D2 height=3D10></td>
 </tr>
 <tr>
  <td></td>
  <td><img width=3D615 height=3D7 src=3D"pyr9_3_files/image002.gif" v:shape=
s=3D"_x0000_s1033"></td>
 </tr>
</table>

</span><![endif]><b style=3D'mso-bidi-font-weight:normal'><span lang=3DEN-N=
Z><o:p>&nbsp;</o:p></span></b></p>

<br style=3D'mso-ignore:vglayout' clear=3DALL>

<p class=3DMsoNormal style=3D'tab-stops:2.0cm'><b style=3D'mso-bidi-font-we=
ight:normal'><span
lang=3DEN-NZ>Further information</span></b><span lang=3DEN-NZ> may be obtai=
ned
from:<b style=3D'mso-bidi-font-weight:normal'>
http://www.vuw.ac.nz/~caplabtb/dprk/</b></span></p>

<table class=3DMsoNormalTable border=3D0 cellspacing=3D0 cellpadding=3D0
 style=3D'border-collapse:collapse;mso-padding-alt:0cm 5.4pt 0cm 5.4pt'>
 <tr style=3D'mso-yfti-irow:0;mso-yfti-firstrow:yes;mso-yfti-lastrow:yes'>
  <td width=3D319 valign=3Dtop style=3D'width:239.3pt;padding:0cm 5.4pt 0cm=
 5.4pt'>
  <p class=3DMsoNormal align=3Dleft style=3D'margin-left:7.2pt;text-align:l=
eft;
  text-indent:0cm;tab-stops:2.0cm'><b style=3D'mso-bidi-font-weight:normal'=
><span
  lang=3DEN-NZ>Dr Tim Beal<o:p></o:p></span></b></p>
  <p class=3DMsoNormal align=3Dleft style=3D'margin-left:7.2pt;text-align:l=
eft;
  text-indent:0cm;tab-stops:2.0cm'><st1:Street w:st=3D"on"><st1:address w:s=
t=3D"on"><span
    lang=3DEN-NZ>19 Devon Street</span></st1:address></st1:Street><span
  lang=3DEN-NZ>, Kelburn Wellington, NZ</span></p>
  <p class=3DMsoNormal align=3Dleft style=3D'margin-left:7.2pt;text-align:l=
eft;
  text-indent:0cm;tab-stops:2.0cm'><span lang=3DEN-NZ>Tel: +64 4 463 5080
  (day);+64 4 934 5133 (evening)</span></p>
  <p class=3DMsoNormal align=3Dleft style=3D'margin-left:7.2pt;text-align:l=
eft;
  text-indent:0cm;tab-stops:21.3pt 2.0cm'><span lang=3DEN-NZ>Fax: +64 4 934=
 5134;
  Email: Tim.Beal@vuw.ac.nz </span></p>
  </td>
  <td width=3D297 valign=3Dtop style=3D'width:222.8pt;padding:0cm 5.4pt 0cm=
 5.4pt'>
  <p class=3DMsoNormal align=3Dleft style=3D'margin-left:7.2pt;text-align:l=
eft;
  text-indent:0cm;tab-stops:2.0cm'><b style=3D'mso-bidi-font-weight:normal'=
><span
  lang=3DEN-NZ>Rev Don Borrie<o:p></o:p></span></b></p>
  <p class=3DMsoNormal align=3Dleft style=3D'margin-left:7.2pt;text-align:l=
eft;
  text-indent:0cm;tab-stops:2.0cm'><st1:Street w:st=3D"on"><st1:address w:s=
t=3D"on"><span
    lang=3DEN-NZ>7 Thornley St.</span></st1:address></st1:Street><span
  lang=3DEN-NZ>, <st1:place w:st=3D"on"><st1:PlaceName w:st=3D"on">Titahi</=
st1:PlaceName>
   <st1:PlaceType w:st=3D"on">Bay</st1:PlaceType></st1:place>, Porirua, NZ<=
/span></p>
  <p class=3DMsoNormal align=3Dleft style=3D'margin-left:7.2pt;text-align:l=
eft;
  text-indent:0cm;tab-stops:2.0cm'><span lang=3DEN-NZ>Tel/fax: +64 4 236 64=
22</span></p>
  <p class=3DMsoNormal align=3Dleft style=3D'margin-left:7.2pt;text-align:l=
eft;
  text-indent:0cm;tab-stops:2.0cm'><span lang=3DEN-NZ>Email: dborrie@ihug.c=
o.nz</span></p>
  </td>
 </tr>
</table>

<p class=3DMsoNormal style=3D'tab-stops:2.0cm'><span lang=3DEN-NZ><o:p>&nbs=
p;</o:p></span></p>

</div>

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<body lang=3DEN-GB link=3Dblue vlink=3D"#606420">

<div style=3D'mso-element:footnote-separator' id=3Dfs>

<p class=3DMsoNormal><span lang=3DEN-NZ><span style=3D'mso-special-characte=
r:footnote-separator'><![if !supportFootnotes]>

<hr align=3Dleft size=3D1 width=3D"33%">

<![endif]></span></span></p>

</div>

<div style=3D'mso-element:footnote-continuation-separator' id=3Dfcs>

<p class=3DMsoNormal><span lang=3DEN-NZ><span style=3D'mso-special-characte=
r:footnote-continuation-separator'><![if !supportFootnotes]>

<hr align=3Dleft size=3D1>

<![endif]></span></span></p>

</div>

<div style=3D'mso-element:endnote-separator' id=3Des>

<p class=3DMsoNormal><span lang=3DEN-NZ><span style=3D'mso-special-characte=
r:footnote-separator'><![if !supportFootnotes]>

<hr align=3Dleft size=3D1 width=3D"33%">

<![endif]></span></span></p>

</div>

<div style=3D'mso-element:endnote-continuation-separator' id=3Decs>

<p class=3DMsoNormal><span lang=3DEN-NZ><span style=3D'mso-special-characte=
r:footnote-continuation-separator'><![if !supportFootnotes]>

<hr align=3Dleft size=3D1>

<![endif]></span></span></p>

</div>

<div style=3D'mso-element:header' id=3Dh1>

<div style=3D'mso-element:para-border-div;border:none;border-bottom:double =
windowtext 1.5pt;
padding:0cm 0cm 1.0pt 0cm'>

<p class=3DMsoHeader style=3D'border:none;mso-border-bottom-alt:double wind=
owtext 1.5pt;
padding:0cm;mso-padding-alt:0cm 0cm 1.0pt 0cm'><st1:place w:st=3D"on"><st1:=
City
 w:st=3D"on"><span lang=3DEN-NZ>Pyongyang</span></st1:City></st1:place><span
lang=3DEN-NZ> Report Vol 9 No 3, <span style=3D'mso-spacerun:yes'>&nbsp;</s=
pan>July
2007</span></p>

</div>

</div>

<div style=3D'mso-element:footer' id=3Df1><span class=3DMsoPageNumber><span
lang=3DEN-NZ style=3D'font-size:10.0pt;mso-fareast-font-family:"Times New R=
oman";
mso-ansi-language:EN-NZ;mso-fareast-language:EN-US;mso-bidi-language:AR-SA'=
><span
style=3D'mso-field-code:" PAGE "'><span style=3D'mso-no-proof:yes'>10</span=
></span></span></span>

<div style=3D'mso-element:para-border-div;border-top:none;border-left:solid=
 windowtext 3.0pt;
border-bottom:solid windowtext 3.0pt;border-right:none;padding:0cm 0cm 1.0p=
t 4.0pt'>

<p class=3DMsoNormal align=3Dcenter style=3D'text-align:center;border:none;
mso-border-left-alt:solid windowtext 3.0pt;mso-border-bottom-alt:solid wind=
owtext 3.0pt;
padding:0cm;mso-padding-alt:0cm 0cm 1.0pt 4.0pt'><span lang=3DEN-NZ><o:p>&n=
bsp;</o:p></span></p>

</div>

</div>

<div style=3D'mso-element:header' id=3Dfh1>

<p class=3DMsoNormal align=3Dleft style=3D'text-align:left;text-indent:0cm'=
><b
style=3D'mso-bidi-font-weight:normal'><span lang=3DEN-NZ style=3D'font-size=
:48.0pt;
mso-bidi-font-size:10.0pt;font-family:Arial;mso-bidi-font-family:"Times New=
 Roman"'><span
style=3D'mso-spacerun:yes'>&nbsp;</span><st1:City w:st=3D"on"><st1:place w:=
st=3D"on">Pyongyang</st1:place></st1:City>
Report<o:p></o:p></span></b></p>

<p class=3DMsoNormal align=3Dright style=3D'text-align:right'><b style=3D'm=
so-bidi-font-weight:
normal'><span lang=3DEN-NZ style=3D'font-size:14.0pt;mso-bidi-font-size:10.=
0pt;
font-family:Arial;mso-bidi-font-family:"Times New Roman"'>News and views on
DPRK - <st1:country-region w:st=3D"on"><st1:place w:st=3D"on">North Korea</=
st1:place></st1:country-region><o:p></o:p></span></b></p>

<p class=3DMsoHeader align=3Dright style=3D'text-align:right'><i style=3D'm=
so-bidi-font-style:
normal'><span lang=3DEN-NZ style=3D'font-size:14.0pt;mso-bidi-font-size:10.=
0pt;
font-family:Arial;mso-bidi-font-family:"Times New Roman"'>Vol 9 No 3 July 2=
007</span></i></p>

</div>

<div style=3D'mso-element:footer' id=3Dff1>

<div style=3D'mso-element:para-border-div;border:none;border-top:solid wind=
owtext 1.5pt;
padding:1.0pt 0cm 0cm 0cm'>

<p class=3DMsoNormal style=3D'text-indent:0cm;border:none;mso-border-top-al=
t:solid windowtext 1.5pt;
padding:0cm;mso-padding-alt:1.0pt 0cm 0cm 0cm'><span lang=3DEN-NZ><o:p>&nbs=
p;</o:p></span></p>

<b style=3D'mso-bidi-font-weight:normal'><span lang=3DEN-NZ style=3D'font-s=
ize:9.0pt;
mso-bidi-font-size:10.0pt;font-family:"Times New Roman";mso-fareast-font-fa=
mily:
"Times New Roman";mso-ansi-language:EN-NZ;mso-fareast-language:EN-US;
mso-bidi-language:AR-SA'>Pyongyang Report</span></b><span lang=3DEN-NZ
style=3D'font-size:9.0pt;mso-bidi-font-size:10.0pt;font-family:"Times New R=
oman";
mso-fareast-font-family:"Times New Roman";mso-ansi-language:EN-NZ;mso-farea=
st-language:
EN-US;mso-bidi-language:AR-SA'> is compiled by Tim Beal and Don Borrie,
assisted by Stephen Epstein, as a contribution towards greater knowledge and
understanding of <st1:country-region w:st=3D"on"><st1:place w:st=3D"on">Nor=
th Korea</st1:place></st1:country-region>.
Signed commentaries are the opinion of the specific author and not necessar=
ily
those of the editorial team. Further information may be obtained from the
editors (see final page), and from the website at <b style=3D'mso-bidi-font=
-weight:
normal'>http://www.vuw.ac.nz/~caplabtb/dprk/</b></span>

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