4TH LD: U.S. rejects N. Korea cash demand on missile exports

0 Comments | Asian Political News, July 17, 2000

KUALA LUMPUR, July 12 Kyodo

(EDS: UPDATING WITH MORE QUOTES, BACKGROUND)

The United States rejected Wednesday North Korea's demand for $1 billion in cash compensation to end its export of ballistic missiles and related technology, offering Pyongyang instead "tangible benefits" from a normalization of bilateral economic ties.

"North Korea should not be receiving cash compensation for stopping what it shouldn't be doing in the first place," chief U.S. negotiator Robert Einhorn told reporters after three days of talks with the North Koreans in Kuala Lumpur.

Einhorn was speaking just two hours after North Korean delegation leader Jang Chang Chon told reporters the U.S. "should make cash compensation in case we suspend our missile exports -- in our own estimation about $1 billion."

Jang said that during the negotiations his delegation "clarified that we could continue our discussions on condition the U.S. side was willing to make compensation for our political and economic losses we would incur if we suspend our missile exports."

But Einhorn, assistant secretary of state for nonproliferation, indicated he does not see resolution of the compensation issue being a precondition to further missile talks between the sides.

"As far as we're concerned we need simply to reach agreement on a time and place," he said. "We would very much expect to meet this year. We would hope to meet within the next few months."

Einhorn described the talks, the first since March 1999, as "very worthwhile," saying, "After a 16-month hiatus in the talks, no one was expecting major breakthroughs."

"But the three days gave us an opportunity to exchange detailed views on our respective positions, to discuss proposals that the U.S. has put on the table regarding North Korea's missile exports and its indigenous capabilities, and to begin to lay the groundwork for hopefully making significant progress in the days ahead."

Einhorn said that as North Korea addresses "very seriously" U.S. concerns about its missile and nuclear programs, "we are prepared to move step by step toward full economic normalization."

"Naturally, such an evolution in a relationship will involve tangible benefits for (North Korea)," he said, adding the normalization process will involve various forms of mutually beneficial "interactions."

The chief U.S. negotiator said it is hard to predict now what precise kinds of "interaction" would be most useful to North Korea given its current stage of economic development, or what Pyongyang would be most interested in receiving.

But he acknowledged that U.S. government assistance would be "part of a normal normalization process."

Last September, after North Korea vowed to refrain from testing long-range missiles while efforts to improve relations continue, the U.S. government began a process that resulted last month in the easing of some sanctions against North Korea.

The new rules concern consumer and nonsensitive exports. They also allow importation of most goods of North Korean origin, as well as allowing personal remittances and easing transport restrictions.

But North Korea remains designated a terrorist state under U.S. law and nonproliferation controls, so the latest relaxation of sanctions does not affect some financial activities and most U.S. government aid.

During the four previous rounds of missile talks, which began in 1996, Pyongyang similarly offered to end missile exports if the U.S. agreed to compensate it in hard currency for lost earnings. Wednesday, however, was the first time for it to publicly state a figure.

Exports of missiles, related equipment and technology have been a major source of hard currency for North Korea, which in recent years has suffered industrial and agricultural declines that have left it struggling to feed its people and maintain its huge army.

In the latest round of talks, North Korea stuck to its position that its development, production and deployment of ballistic missiles is nonnegotiable.

"We once again clearly emphasized the missile policy of our revolutionary armed forces (is) to develop, produce and deploy powerful missiles continuously for our self-defense," said Jang, who is director general for U.S. affairs at North Korea's Foreign Ministry.

"The missile issue...belongs to the independent right of a sovereign state as it carries the nature of our self-defense, national defense policies," he said.

Citing the "military threat" posed to North Korea by the U.S. deployment of "thousands of missiles" around North Korea, he said, "That is why the United States has no right to make such an unjust claim for the freeze of our missile capabilities."

Einhorn said the U.S. recognized North Korea's concerns that negotiations about its missile capabilities would jeopardize its security, but said, "We don't believe the kinds of arrangements we have in mind will undermine North Korean security."

"And at the same time we believe that these arrangements would promote overall North Korean national interests, including its economic goals and its political goals throughout the world."