JPRS ID: 9347 KOREAN AFFAIRS REPORT

• Document Type: CREST
• Collection: JPRS
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00850R000300040027-5
• Release Decision: RIF
• Original Classification: U
• Document Page Count: 28
• Document Creation Date: November 1, 2016
• Sequence Number: 27
• Content Type: REPORTS

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JPRS L/9347
15 O~ctober 1980
~ Korean Affai r~ Re ort .
. p
CFOUO 8/80)
FBIS FOREIGN BROADCAST INFORMATIdN SERVICE
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NOTE
JPRS publications contain information primarily from foreign
newspapers, periodicals and books, but also from news agency
_ transmissions ~nd broadcasts. Materials from foreign-language
sources are translated; those from English-language sources
are transcribed or reprinted, with the original phrasing and
other characteristics retained.
Headlines, editorial repc,rts, and material enclosed in brackets
are supplied by JPRS. Processing indicators such as [Text]
or (Excerpt] in the first line of each item, or following the
last line of a brief, indicate how the original information was
' processed. Where no processing indicator is given, the infor- _
mation was summarized or extracted. -
_ Unfamiliar names rendered phonetically or transliterated are
~nclosed in parentheses. Words or names preceded by a ques-
tion mark and enclosed in parentheses were not clear in the
~ ori.ginal but have been supplied as appropriate in context.
Other unattributed parenthetical notes with in the body of an
item originate with the source. Times within items are as
given by source.
The contents of this publication in no way represent the poli-
cies, views or attitudes of the U.S. Government.
,
COPY?ZIGHT LAWS AND REGULA,TIONS GOVERNING OWNERSHIP OF
MATERIALS REPRODUCED HEREIN REQUIRE THAT DISSEMINATION
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JPRS L/9347
15 October 1980
KOREAN AFFAIRS REPORT
(FOUO s/8o)
CON7EHTS
INTER-KOREAN AFFAIRS
High DPRK Official Unveils Reunification Plan
to Visiting Quaker Group
(MAINICHI DAILY NEWS, 19 Sep 80) 1
SOUTH KOREA
POLITICS AND GOVERNML�'NT
Kim's Trial Is Unjust, Wife Tells 'ASAHI'
(ASAHI EVENING NEWS, 15 Sep 80) 3
Journalist Reports How Foreign Press Cenaorship
Is Carried Out
(,ASAHI EVENING NEWS, 5 Sep 80) 5
ECONOMY
Economy in Doldrums From Worst Recession Since 1964
(DAILY YOMIURI, 8 Sep 80) 7
FOREIGN RELATIONS
ROK Foreign Minister, Japanese Ambassador Discuss
Various Issues
(ASAHI EVENING NEWS, 19 Sep 80) 9
NORTH KOREA
ECONOMY
Japanese Businesses Interested in Trade With DPRK
(Onda; NIKKEI SANGYO SHIMBUN, 25 Aug 80) 11
- a - [III - A5IA - 109 FOUO]
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Briefs
Pig Iron Export to Japan 14
Corn, Rice Harvest 14
KOREANS IN JAPAN
Validity of North Korean Spy Cases in Japan Queationed
(ASAHI SHIMBUN, 11 Aug 80) 15
FOREICN RELATIONS
Gist of Kim's Statement Made to LADP Delegation Leaders
(MAINICHI SHIMBJN, 15 Sep 80) 21
Brief -
Possible DPRK-Philippines Tiea ~ 23
~ - b -
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INTER-KOREAN AFFAIRS
HIGH DPRK OFFICIAL UNVEILS REUNIFICATION PLAN TO VISITING QUAKER GROUP ~
Tokyo MAINICHI DAILY NEWS in English 19 Sep 8Q p 2
.~Text ]
visited North Korea at the in- present at the Sept. 26 sesslon oi
~ High ranking North Korean vitation of the communist the talks," liaud Ea'ster added.
officials, appareatly taking a governmentSept.2-13, North Korea broke off the
hint from China's proposed Communist oflicials, in- talks in August to protest the
solution to its '1'aiwan problem, cluding the secretary of the South's cldmpdown on political
have unveUed plans for re- central ~ committee of North dissidents.
unitying Korea to three visiting Korea's Commwust Party, said North Korean officials also
American Quakers. that under confederation "each reiterated to the group that it is
"North Korea is proposing a side must not intertere in the prepared ' to carry out direct
confederation in whicb the other side's internal affairs, negotIations with the United
existing economic, social and must not impose its view on the States but South Korean par-
political systems of the North other side and people sho~ld be ticipation would be reduced to
and South would remain as they free to live wherever they observer status.
are. Foreiga investment could want." �~~It aants direct government
. not only continue but be in- Both sides,would remain in- to government talks. If the
creased under confederation," dependent but `a natioeal com- U n i ted S t a te s a p p o i n t s
the delegation said Tues~ay !n a mission would seek agreement somebody then North Korea
joint statemeat summtng up its on economlc collaboration and will appoint somebody. 'Fhe
11-day tour of North Korea. joint diplomatic represen- South Korew~s could be present
The North's proposal [s tation." as observers," David Easter
similar to otre put forth by The three sald North Korea said.
China as a solutlon to the also wants to coatlnue ~~The ~iscussions can take
Taiwan�issue. Peking prnposed ~ negotiations with South Korea place in many forms and there
"reunification" whlle allowing almed at arranging a meeting ~e no preconditions of any
ihe preservation of separate betweeu their two premier's kind," Easter added in an
administrative' and economlc despite the South's trial aad oblique reference to North
systems. conviction ot leading dissident 'Korean demands for the
The Quaker representative to Kun Dae Jung. ~ mllitary withdrawal of the
the Uaited Nations, Stephen "We were told by North U~~ States from the penln-
Thiermann, along witb Davld Korea's chief negotIator to ihe sula.
Easter and his wite, Maud, South-North talks that he will be ~~North Korean officials told
1
FnR (?FFT(:T~T TTSF f1NT.Y
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us that the paramount issue in
their minds is to change the
Korean War armistice ~o a
peace treaty. They feel this ~v?:;
require the withdrawal of all
United States forces," the joint
' statement said, referring to
- North Korea's proposed precon-
- dition for any settlement.
The delegation said the
North's support for the idea of a
peace treaty underscored a
recent~ statement by North
Korean President Kim Il Sung
~~that his country would abolish
its military alliance with the
. Soviet Union and China if the
present armistice was replaced
by a bilateral peace treaty." ,
The Quaker~ said they ex-
tended an invitation to North
Korea to send a delegation to
the Unitesi States and had
received as..M.~'ances from the
IU.S.) State Department that
"suitable exchanges with North
Koreans would be approved,
indeed encouraged."
They added that about 100
Americans have toured North
Korea. ~
~ COPYRIGHT: Mainichi Daily News 1980
CSO: 4120
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S. KOREA/POLITICS AND GOVERNMENT
KIM'S TRIAL IS UNJUST, WIFE TELLS 'ASAHI'
Tokyo ASAHI EVENING NEWS in English 15 Sep 80 p 3
[Text] Yi Hui-ho, the 56-qear-old wife of South Korean dissident Kim Dae
Jung, told the Asahi Shimbun over the telephone 3aturday evening that the
trial of her husband was unjust and that she had not gone to any of the _
hearings.
Answering questions in a waveri.ng arid small voice, she said that her husband
had never officially accepted the chairmanship of the Tokyo headquarters of
the Hanmintong,.a group of Koreans in Japan. She also said that her husband's
health was not good.
She said that both she and her husband were dissatisfied with the way in
which Ho Kyo-man, a me~ er of the National Assembly from the New Democratic
Party, had conducted the defense.
She said she was reading those newspapers that did not give details about
her husband's trial and that she was not interested in the results of the
~ trial because the trial was un3ust from the beginning.
Asked if she had met her husband, she said that she had been permitted to
see him for 10 minutes on Sept 9, but that she cr~uld not say anything about
the meeting over the telephone.
She said her husband's health was better than before but he was not healthy.
He said he had no appetite in the meeting. She said that she had not been
" allawed to take him food, although books were allawed. Kim is naw reading
books on religion.
She said she was living at home with her third son, a second grader in high
' school, and four maids. ~he sai,d that she had no #reedam o~ moveAlent and
policemer,were on guard outside her home.~ .
She expressQd great regret that no acceptable soiution of her husband's
abduction from Tokyo had been reached.
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Meanwhile, Cho Hwal-chung, general secretary of Hanmington, said in Tokyo
Saturday, "We unilaterally recommended Kim as chairman without his approval,
and we unilaterally removed him from the post."
The Hanmington Tokyo headquarters was established on Aug 13, 1973, after
Kim's abduction. It annouac:ed that it ~,ras reco~ending Kim, who was missing
at that time, as chairman. On March 24, 1980, it announced that Kim wes
being removed from the post.
COPYRIGHT: Asahi Shimbunsha 1980
CSO: 4120
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S. KOREA/POLITICS AND GOYE$1QMENT
JOURNALIST REPJRTS HOW FOREIGN PRESS CENSORSHIP IS CARRIID OUT
Tokyo ASAHI EVENING NEWS in English 5 Sep 80 p 3
jT~t~
SEOUL - South Korea's For Koreans writing for ~ authoritiea regard as con-
martial law commarid is crack- foreiga news organi2ations; ~tious material-and re-
ing down on press coverage the impact of pooled reports Po~d1Y forced to sign � state-
by foreign correspondents as is a serions matter, for they ments~ as a precondition for
well as local reporten. run the risk of interrogation their release. ,
Correspondents covering ~d imprisonmerit if tbey file '1"he roundup of the Korean
. materia! from "other sources" correspondents followed the
what is described as the open' Government's order closin
trial of Kim Dae Iung and ~at ~e censors had deleted dawn the local buresu of the
23 others charged with a range ~~e pooled ~ versions.
of olitical crimes must rely T~ ~ law~. commaad ~i Shimbun along with
p showed it meant bttsiness when Kyodo and Jiji Press for dis-
on pooled reports written by seminatin stories alle in that
the two forei re orters i- it arrested five Koreans work- g g g
8~ P Pe Kim Dae Jung had been
mitted to attend each session. ~8 for foreiga newa organi7a
Censors have cut these re orts tions eazly on the moraing of tortured while awaiting trial
- P July 24. One of them, Shun aa sediEion charges. General
heavily, generally eiiminating Lee Hui Sun the martial
an material reflectin nn- J~ Koon, reporting for the g~
y g New York Timrs, Le Monde law commander, criticized the
favorably on the authoriries re ort at a dianer for foni n
or the legal basis for the trial. ~d the Far Easterp Economjc ournalists at which he asked
Review, was released that 1
For yisiting correspondents, evening along with his wife, lf they thought "our military
the result is that they must Chang Mayag Sook, forced to investigators are so recklrss as
theorerically rely on other resign from her job as a to batter Kim out of shape
"observers," including foreign feature wriier for a local lcnowing they will have W put
diplomats, attending each ses- ~~,irspaper; Hankook Ilbo. b~
sion to get those quotes that '~e others, inclvding Asso- Ironically, Shim Hwang and
ue showing up in newspapers ciated Press Bureau Chief Chun all attended the dinner
aroUnd the world about what K. C. Hwang; Reuters corre- at which Lee seemed anxious
the defendants call "political spondent Oh Ilsoa, Chun Hak to win the sympathy of the
repression.': The censors still Bum of NHK Radio and foreign press for the military -
do not interfere with outgoiag Chung Ho Sang of the A'sahi regime, led by General Chun
copy filed via leased wires, Shuabua were held for more Doo Hwan. Oh Ilson was on
pnpaid telea or telephone ~y~ 48 hours before they vacation at the time.
although they do insist upon ~�~n y~t homa All of them Inevitably, the maztial law
reviewing all material sent were warned aot W write what command has reserved its
with Intemational Telegraphic harshest treatment for the tocal
Union credit cards-a nuisance press and its staffers. It
for those who don't like pay- clossd dowa 172 publications
ing their bil(s before leaving in July, and has forced hun-
_ the cicy. dreds of laurnalists to nsign
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ta. u..-~ tsiai, P..1 :~.pet ts.. H
. , ;�:y; -~c ~
r.eosot .�a.n. ~a a,t. eo l'~' '
~ . .
o'vwsssm ~.ae.e ~ ~,e
. y
w..ti~. t~n. pe...e~t.r. ,c t~h. ..ema av . . asuw~. trs.l
h~er ~a ahar'As mda~ th~ llati~wl i~eorit~ ]w ata ~lba yai `
.
v+~t Wt RY~ erial w.imau
~,'1 ~++i ipL~ t!~ ~oESM D~na ae tb~ piw~ant~s.
7 d~e11s~ t~ aM~e qwsLi~ beaaoN tLis Lrlal a~a~t~ t1 p~lit!
=~pr~iay~ wid ti~ 36`~ar:~ld Ddi!ltian.
. ,
T~HOP R~ENT TNE CHJP o~t~ pool 'reporu o/ Rina's trial.
.w~u u~w~papCr~ ana maga- At the same time, Govem-
ziaes. A number of joumalists meat spokesmen are calling in
have also been rounded np, offending journalists for polite
held~ for varying lengths of little chats about articles that
time and interrogated. have upset the authorities. .
For foreign correspondeats "Some of my cblleagues have
workin here, the uesdon is not been happy about some
whetheg the martiallaw com- of Ya~' stories;' was a typical
nmark addressed to this cor-
mand will exercise much more respondent. "Perhaps," said
stringent censorship thaa it the official, "you should be
has already put into effec~ more careful ia the future."
I7~e Government has already . ~
begun to delay the issuance (Reproduced from the No. 1
of visas and has denied many Shimbun. the journal of the
jouraalists the luxjuy of t1~e Forei~n Coaespondents' Club
multiple-eatry visa, which it of Japan, issued on Aug. 15)
used to issue without hesita-
tion.
COPYRIGHT: Asahi ~l~ening News 1980 .
CSO: 4120 .
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S. KOREA/ECONOMY
ECONOMY IN DOLDRUMS FRQM WORST RECESSTON SINCE 1964
Tokyo DAILY YOMIURI in Japanese 8 Sep 80 p 4
jT~t~
Seoul (AFP)-The first job f or th,e new regirne in, South KoTea is to gEt t~e -
economy poing again, su$ering as it is fro~n �the worst recession th.e nation ha.s
experieri.c;;d since 1964. ~ � ~ " -
Auaterity is� applied along'
with marZial law. ThLs hss
at least �one advantage for rnvaLe sector consump- vmc18.1s at th~ Econoznic
the- business community in ~ion has fallen sharply, .and P1~~B ~~�rd tnink the
this country and in�erna- IIve percent o! the labor has reached. its wor~b,
tionallg: there are no paq iorce is out oi work, tre and they predict gropth be-
claims or strikes, and'con- total being around 800,000. tween zero and two per-
lidence in the South Korean South Korea - has been cent.
economq seems to � be' re- ursluckp since the launch o! ~e basic reason !or
turning. � a sta.bilization plan a year optimism is the study ex-
- For the moment, however, ago when iaSation threaten- Port sector, where the Sgure
the � situation looks fairly ed the nation's cornpetitive- ~ June R?as 18 percent up
grim. The groas natlonal ~ aesa on the lnternattonal on a year earlier. , _
pwduat (C3NP) which drop- market, ~ ' The atmosphere of uncer-
ped 1.8 percent in t~ie Srst The rise in oil prices� in- ~ tainty ariaing irom th~ as-
quarte: plunged 5.9 percent cresaed the fuel bill to ~8,000 sassination , o! president
fa~ the secund, against a ~11Son this year, as aom- p~'k Chung Hee on Octo-
growth o! ?.l percent last pared wtth an estimate oi ber 2? last yeas has gi.ven
ye~, ~3,200 million d=awn up last way to a ieslin~ oP relieY _
All sectors oi the ecvnomy ~cember.. . in business and banking
have been hit, with machine Additionallq 'strik-s, stu- circles at the caltn imposed
toola suSering mast. A quick dent demonstrations and ~der martial. law.
upturn !s unlikely in view o! the Itwang~u rebellton un- Fbreign orders are hoid-
dermined. exports !or two up w:ll. Wages which
the stock buiidup. ' months. ~ liave alreadq jumped 27
Conatruction, one ~ oi the
dynarnos o! this economq, is The economic and social ~ percent , this year against
going through a slump. The cr�iaia plns unemploytnent forecast 15 percent will .
~etback waa 13.5~ percent in led to the June launch o! $~Y � as they are for the
the aecond quarter as com-. a recoverq program whose rest oi the year. Staf! are
pared with the 17rst. e8sct avill be ' a~ slight ~ore worried about keQning
Adverse wea~ther led to a worsening of inIIation, now their jobs, Economic Plan-
13 percent drop in agricultu- forecast at 30 percent for. ~ng Board� offlcials say.
the current year. ' Real wages will. be davm
ral output during the same this' year, so that price
au~~r' stabilization can be Hoped
for.
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Next year's growth is be- Only one company, Hyun- The eight-month flgure
_ ing forecast at Sve or six dai, instead of three, is now represents 62 percent ot the
percent, and predictions are allowed to make private 10 companies' comb~ned 1980
even more sanguine for the cars. The Dae~too group has target, and accounts for 39.2'
perlod beyond Lhat, had to give up cars but it Percent o! F~orea's total ex-
The ske!c*!ed-out flfth 1s provided with a monopolq ports during the period.
tlve-year plan g~ves an in power station equipment Million Loan
average eight or nine per- and heavy plant. The I~A Seoul (Hapdong-Kyodol-
cent growth rate, with in- company is the only one Taihan Bulk Terminel Com-
flation brought baclc to 10 allowed to make trucks.
percent. These measures are de- Pany of South Kotea will
shortlq obtain a S'~ million
Per capita output from signed to avoid over !nnlst- loan� irom the International
thLs country's 38,200,000 peo- ment such as was seen in Finance Corporation (IFCI
ple should reach 54,200 in recent years and has led for the construction o! bulk
1986 a~ainst last year's to some large factortes re- ~~nal facilities at the
51,824. in constant dollar maining hali-nnfshed due west coast port of Inchon.
values, this means an im- to lack .oi money and mar-
provement of some 1~ per- kets. A regrouping in the
cent. electronles sector may also
In pardllel with martial take place.
Iaw and Ghe social cIeanup Exp'orf Earnings
now in progress, a special 3eou1 (OP-Kyodo)-South
committee covering natlonal Korea's 10 major trading
security measures and in- companies exported some
volving several ministrles a4.3 bAlion worth of com-
has ~ust decided on vigor- modities during the Srst
ous restructuring or the eight months of this year,
chief sectors in the eCOn- 45.3 percent more than in
omv. the same period last qear,
according to statistics com-
piled by the Commerce-In-
dustrv Ministrv.
COPYRIGHT: Daily Yomiuri 1980
CSO: '4120
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S. KOREA/FOREIGN REIATIONS ~
_ ROK FOREIGN MINISTER, JA.PANESE AMBASSA.DOR DISCUSS VARIOUS ISSUES
Tokyo ASA,HI EVENING NEWS in English 19 Sep 80 p 1
~Text] Even the South Korean Foreign Ministry does not yet know which
laws and decrees were applied ;ahen the court martial sentenced Kim Dae
Jimg to death, according to reports received by the Forei~n Ministry
(Gaimusho) from the Japanese Ewbassy in Seoul on Thursday night.
Japanese Ambassador Ryozo Sunob e met South Korean.Foreign Minister Lho
Shin Young in Seoul on Thursday afternoon to convey again Tokyo's deep
concern over the fate of Kim and to ask for a detailed explanation of laws
and decrees applied in the sentencing of Kim.
Lho said that the court had taken into consideration Kim's activities after
he was abducted to Seoul from a Tokyo hotel in 1973, but that he did not
know which activities of Kim were taken into account or which laws and
decrees were applied. The Korea.n Foreign Ministry has not yet obtained
the official text of the courfi's decision, he said.
The Foreign I~'i-inister promised he would make efforts to get the text for
for the Japanese Gover~ent. He remarked that the court martisl had taken
into account the political settlements of Ki.m's abduction that were reached
between the two governments and that it had dropped the charge of violating
~ the Nationa.l Security Act for Kim's activities in Japan. ?ie said the
Justice Minisitry had dropped ~he cha.rge after the Foreign Ministry had
told it of Japan's concern.
Sunobe asked the Seoul Government to undertstand that Japan's policies
Coward South Korea would inevitab ly b e affected by the pub lic reaction
- to the sentence. Lho listened carefully, but reportedly made no comment.
Lho asked wh~n Tokyo would decide to hold the next session of Che bilateral
regular ministerial conference which has been delayed for a long time.
Citing the Japanese dmnestic political schedule, Sunobe replied that he
could not answer at present.
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~ Lho also expressed Seoul's concern over the increasing number of Japanese
political and economic missions to North Korea which, he said, might
greatly affect the policies of third countries toward the Korean Peninsula.
Sunobe replied that Tokyo's policy of not recognizing Pyongyang would
remain unchanged, but that the Government would not interfere in exchanges
between North Korea and Japanese political and business circles.
COPYRIGHT: Asahi Evening I1ews 1980
CSO: 4120
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, N.KOREA/ECONOMY
JAPANESE BUSINESSES INTERESTED IN TRADE WITH DPRK
Tokpo NIKKEI SANGYO SHIM$UN in Japanese 25 Aug 80 g 2
[Article by correspondent Onda: "Large Business Concerns Leaning Toward
North Korea; Trade Council Organized"]
[Text] More than 20 large businesa firms--including trading houses and
the makers of iron ann steel, nonferroua metals, marine products, and
paper products--recently organized the "East Asia Trade Council," with
Tatsuzo Mizukami as president, in response to a call by leaders of
financial circles and Chairman Yoshihiro Inayama of Keidanren, w:i.th the
aim of normalizing relations between the economic circles of Japan and tlie
Democratic People's Republic of Korea. As I was covering the development,
I felt it was interesting to see the striking similarity between thia
recent development and what happened 10 years ago. Then, financial
leaders including Mr Inayama organieed the "China-�Asia Trade Center"
~ Co advance relatione with China at a time when there were no formal
diplamatic relations. The center was later dissolved and renamed the
"Japan-China Economic Association," which helped many large Japanese busines-
ses to drop their dummy corporations and led them to develop an active
trade relationship with China.
At the Moment, the Situation in South Korea Is Uncertain ~
The true motivation of ~he move has become the subject of speculation:
Why did it have to be set up at a moment when the attention of the world is
focused on South Korea because of a series of recent eventis in the
country, including the military court-martial of Kim Tae-jung and the
inauguration of General Chun Tuhwan as President? It appears that
atrong pressure was applied for the move by the trading pereonnel, who
wanted to see large businesses drop their dumcny [corporations] and involve
" themselves directly with the matter of settling North Korea~s debt to
Japan,which amount to 80 billion yen.
There was no official c amnent on the objectives or motives in organizing
the trade council. To date, Japanese trading with North Korea has been
conducted mostly through dummy corporatione. If large Japanese business
firms take a step toward opening up an expanded trade relationship with
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North Korea, it will certainty offend South Korea. As a matter of fact,
the South Korean Embassy in Japan lodged a strong protest against the
formation of the trade council, and made no attempt to conceal its anger.
Under the circ~unstances, the individuals involved in the move have been
asked to remain tightlipped, but a few members who attended the inaugural
meeting touched briefly on the subject and explained its aim: "The initial
objective in f.orming it was Co have the large firms replace the dummies
in collecting the trade debt payment." At present, Japan has a claim
of nearly 80 billion yen against North Korea. Last summer, an agreement
was reached between the Japanese creditor group and the North Korean
authorities after tough negotiations: (1) A delayed interest payment
- of 1G billion yen wi11 be made b; June 1980; (2) Payment of the principal
amount w~ll be made twice a year through deposit at the bank in Japan of a
part of funds ~:ealized from North Korea's export sales to Japan, and these
deposits will be applied againat the debt settlement over a 10-year period
until 1989.
Despite the agreement, however, no deposit has been made at the bank in
Japan, ~espite strong urging by the Japanese side, although an interest
payment had be~n made by this summer. So far, North Korea has twice
failed to keep its pranise of a payment settlement, and the current situation
in North Korea seems to suggest no assurance of a smooth settlement
unless foreign exchange holdings improve, giving them strength for the
settlement. Against this background, Mitsui Industries, said to have more _
than half t:~e share of the claim through Sinwa Industry, Mitsui's dummy
corporation, is rumored to have worked on the financial circles, urging
the fo~tnation of an organization involving large buainess firms to replace
the Japan-Korea Trade Association and its dummy corpo.rations. The
position(of MitsuiJ would be: "The debt settYem~nt i~sue should not be left
to the du~unies forever. A reviEw of the change in the international
situation centering around the Korean Peninsular suggests that large _
Japanese businesses should become directly involved with the normalization
of econanic relations between Japan and North Korea so as to expand trade _
relations, and t~~is would contribute to an early settlement of the matter."
This was in the spring of this year. - '
U.S. Congressman's Visit to Pyongyang
As a matter of fact, France and T~Jest Germany are actively seeking to expand
trade relations with North Korea, and in July, U.S. Congressman Stevenaon
~ visited Pyongyang, the first such visit by a U.S. lawmaker, indicating
that a change may be in the offing �Ln the American policy of envelopment
and isolation of North Korea. In financial circles, a consensus of
opinion has it that the Korean issue is headed toward a medium- to
long-term solution. This opinion may have arisen from the belief thaC the
~ opportunity must not be missed to take advantage of in~ternational develop-
ments, since the time has come to improve relations with North Korea, "the
country with natural resources" si~ch as coal and nanferrous metals.
Furthermore, one may expect to aee iron and ateel and other mineral
' exploration projects to be completed within the next 3 or 4 yeara.
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On the other hand, the North Korean side since the beginning of the year
has frequently made approaches to Ja~anese financial circles for improved
r~.lations. Behind these moves there is this new development: China is
rapidly leaning toward the West, with the United States in the lead,
while the Soviet Union is turning its attention to East Europe and [other)
countries in Europe. North Korea may be worried that it could become
an orphan in the international economic field if nothing is done. It would
be no wonder if North Korea were to ass~e that contacts with technically
advanced Japan, which has plenty of capital funds available, would
result in pressuring South Korea, thus gaining advantages at the negoCiating
table for reunification talks.
In the final analysis, the truth behind the formation of the East Asia
Trade Council can perhaps be seen in a combination of factors, including
the desire of Japanese trading firms as regresented by Mitsui Industries to
ensure a payment settlement, the belief of financial leaders that "the
time has come to improve relations in view of international developments,"
and the strong approach made by the North Korean side to reciprocate the
Japanese move.
Exploration of Natural Resources To Begin
The trade council's secretariat is slated to be located at the World
Econanic Information Service [WE1S] Foundation and, for the time being,
the ~IEIS is expected to play a major role in undertaking exploratory work for
the development of North Korea's industries and resources. At the same
time, the council plans tc~ dispatch a mission to Pyongyang at the earliest
possible opportunity to consult with the authority on such matters as the
development of resources and the problem of debt settlement, all the while
watching developments in South Korea. Presi,dent Mizukami of the taade
council disclosed at his first meeting that a mutual exchange of personnel
- in the economic field should be advanced and that, when the time comes,
the opening of a mutual trade promotion liaison office would be desirable.
Although the trade council has been organized, there is no assurance that
economic relations or exchanges of personnel will rapidly accelerate ae "
has been the case with Japanese-Chinese relations. For one thing, South
Korea is extremely nervous, and ma.ny council members still maintain deep
business relationships with South Korea; this consideration may pussibly
restrict their freed om. The negative South Korean's reaction is not
difficult to understand, but the atmosghere for North-South dialogue or
possible reunification appears even farther removed now than ever, re- -
flecting the worsened relationship between the two in the aftermath of recent
South Korean political developments. (North Korea calls next President
Chun Tu-hwan a cancerous element.~
Would it not be possiblP to see that an economic exchange program between
Japan and North Korea, ance brought onto a regular path of contact and
then with the pipeline expanded, could contribuLe in the long run to last-
ing peace in the Korean Peninsula, just as it has been seen that the
strengthened relationship between Japan and China has contributed to an
easing of tensions in East Asia?
COPYRIGHT: Nihon Keizai Shimbunsha 1980
9364 13
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N. KOREA/ECONOMY
BRIEFS
PIG IRON EXPORT TO JAPAN--According to information made known by steel
industry sources on 29 August, pig iron from North Korea (Democratic
Peoples Republic of Korea) is beginning to come into Japan. The volume
is only a small lot of about 10,000 tons coming in through trading
companies which have connections with the communist bloc but North Korea
is said to have shown a fairly strong desire to export pig iron as this
would also serve as a means of alleviating foreign exchang~ shortages.
The business community has recently begun to move forcefully toward giving
substance to economic moves involving Japan and North Korea by moving
toward reopening ot exchanges through such actions as the inauguration of
an East Asian TraBe Research Association. Some quarters feel that these
pig iron imports are subtly related to this series of movss by the business
comcnunity. As far as i~ports of pig iron from the communist bloc are
concerned, general trading compani~s such as Mitsui Bussan have made import
contracts with the PRC on the scale of lots of 10-20,000 tons. The
contracts call for loading in August through October and a price on the
order of 160 dollars a ton. According to sources involved in the deal, the
price of the pig iron produced in ~Torth Korea is 170 to 180 dollars per
ton, a somewhat higher,price t:~an that of pig iron produced in the PRC.
[Text] [Tokyo NIHON KOGYO SHIMBUN in Japanese 30 Aug p 2] 9111
CORN, RICE HARVEST--On 13 September 1980, a group of Japanese reparters
visi~ed a North Korean military outpast near the Military Demarcation Line.
A MAINI(H I SHIMBtIN correspondent commented in the 16 September 198C
article, "What We Saw From the Tense Military Outpost," that "th~s year
North Korea wi.ll have a bumper harvest, not just in Kaesong but every-
where in North Korea. Corn is swaying in the fields and rice panicles
are bending over. [Excerpts] [Tokyo MAINICHI SHIMBIAd in Japanese
16Sep80p2]
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N. KOREA/KOREAI~IS IN JAPAN
VALIDITY OF NORTH KOREAN SPY CASES IN JAPAN QUESTIONED
Tokyo ASAHI SHIMBUN in Japanese 11 Aug 80 p 4
[Article: Are the North Korean Spies Really Spies?"]
[Text] Now and then, the police announce incidents involving "North
Korean spies." This year, arrests were made follcwing incidents in
Saitama and Hyogo Prefectures, and these cases are now being tried.
TherP is something dark and sinister about the word spy. Spying, by
definition, is "the gathering of information by a hostile nation or group
which is harmful to the interests of a nation or group." In the incidents
in Hyogo and Saitama Prefectures, or even in the spy cases which have
occurred thus far, there has hardly been any activity of an espionage
nature against Japan. The charges brought are for violating the alien
registration law or illegally entering the-country for purposes of North
Korean (persons affiliated with the Democratic Peoples~ Republic of Korea)
ideological or political. activities against Soutih Korea and persons belonging
to the Mindan (a pro Republic of Korean resident organization in Japan).
The sharp division between North and South in Korea has been brought into
Japan. Furthern~ re, the political situation in Japan enters the picture
b~cause Japan does not have,diplomatic relations with North Korea. Even
though these cases do touch upon Japanese domestic Iaws, should they be
announced and interpreted as "spy" cases?
Mysteries
~n the evening of 11 June, local residents reported that an unknown ship
heading toward the Japan Sea had appeared off Kasumi in Hyogo Prefecture.
Police officers confirmed that there had been what appeared to be a rubber
boat returning to the unknown ship. On the following day, police officers
of Hyogo Prefecture who had spread~a net around the area discovered two
persons, questioned them, and arrested them on grounds of having refused
to present proof of alien registration. Police searched the suspects~
residence and seized random-number tables for decrypting ciphers. This
was the story of the arrest of (29-year-old) Hwang Pak, a company employee
from Matsudo in Chiba Prefecture, a~nd (25-year-old) Yi Ki-o, who has no
fixed address and whose occupation is not known. The two are currently
standing trial in the Chiba District Court.
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,
It is said that Hwang said he "had gone for a walk," but Yi "confessed"
that he "had tried to go to North Korea to study the Korean language."
Attorney Sadakuni Miyazaki, who is handling the case, said: "The confession
came after the indictment, and there are strong indications he was made
to confess against his will."
Last February, police in Saitama Prefecture arrested Yi Yong-u (29 years
old); a part-time employee in a coffeeshop, from Funabashi Ci.ty in Chibo
Prefecture. Police said that "in April of last year, Yi secretly left
the country illegally from the coast at Toyama City to go to North Korea and
illegally entered the country on the coast in the vicinity of Fukui
Prefecture around the Iatter part of June. Yi was arrested for violation
of ordinances governing immigration and emigration and for violation of the
alien registration law. From Yi's residence police seized a radio cassette
and code charts. The police also arrested Pak, (56 years old), an aperator
of a coffeeshop in Nerima Ward in Tokyo on charg~s of inducement to violate
- the ordinances governing immigration. They said that Pak had induced Yi to
go to North Korea.
Yi's lawyer, Kenkichi Nakahira, said: "Yi has distant relatives in North
, Korea who took care of him when he was a young student at the Agricultural
and Industrial College. He was told he would be allowed to meet these
people. He also seems to have gone to learn North Korea~s real attitude
in order to play a role in the democratization and unification of Korea." .
However, Attorney Hitoshi Tobari said that Pak, who is charged with having
induced Yi to go to North Korea and having given Yi money, "did not know
Yi at all." The police also announced that Pak was involved in an
activist organiZation composed for the most part of Koreans living in
Japan, and that there are similar organizations in Kansa~ and Kyushu. Since
then, however, no arrests have been made. Director General Katsu~i Sato
, of the Japan-Korea Research Institute points out: '"The North Korean spy
inciden~s are very hard to understand and include many very strange incidents."
Are They Seeking Information?
Since the war there t~ave been dozens of cases in which arrests have been
made and indictments brought for incidents of "North Korean spying."
Those arrested have received sentences of 6 months to 2 years at har~i
labor (nearly half of the sentences have been deferred) or they have been
sentenced to prison or fined for violation of the immigration ordinances
or the alien registration law. Many of the cases have involved illegal
entry of Japan from North Korea or some form of attempt to leave Japan
illegally for North Korea.
The case which the police give as a typical example is the case of Sin Yong-
man, (52), who is said to have turned himself in to the National Police
Agency. According to data from the police, Sin left North Korea in a
small craft out of Wons~n port and came ashore in a rubber boat on the
coast of the Tango Peninsula in Kyoto Prefecture in April 1972, after
receiving somewhat more than 2 years and 10 months of instruction and
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- training in North Korea in spying acr_ivities, the Japanese language, and
the Japanese way of life. He moved in with a"base man" (a Korean resident
of Japan with friends and relatives in North Korea) who had a child attend-
ing a North Korean university. Later he lived with a Korean woman living
in Japan whom he knew. He forged alien registration papers and became
a Korean resident of Japan.
The police say that his mission was, first, "to gather military intelligence
and data on South Korea (Republic of Korea)" and, second, to gather intel-
ligence and data on the economy and politics of South Korea and on ',:he
- Japanese defense forces and military supply plants. The police have also
written that Sin was directed to win over Koreans residing in Japan who
were members of the Mindan, neutralists, or naturalized Japanese, to sen~
these people to North Korea, and, after they had returned to Japan, to
send them to South Korea, set them up in business, and assign them to
gather. intelligence.
Is "Brainwashing" the Intent?
Materiai `r^m r_he police stresses that the missions of the "North Korean
spies" are~targetec:.at Japan. According to the police ("Focus" by the
Police AdministratioT~ Bureau, National Police Agency): "They survey and ~
gather secret information on the whole range of Japan~s politics, economy,
defense, and foreign relations and, using Japan as a base, they carry out
espionage and conspiracy activities against third countries.~' South
Korea and Mindan, however, deny the validity of this view.
"The main operation of the North Korean spies who come to Japan is
targeted against persons in Japan who are Korean nationals. Their mission
is to educate these people and use their relatives in South Korea tn
further antigovernment activities in South Korea, such as the struggle for
democratization and the rejection of forei~;n (U.S.) influence" (Chfoe
T'ae-sun, chief of the Culture and Public rnformation Division, South
Korean Embassy).
"The goal of the North Korean operatives in Japan is to create bases for
propaganda and personnel operations against South Koreans in Japan in
order to bring aboui. a revolutionary situation and mov~ments to oppose the
regime in South Korea" (Deputy Airector Yun Yung-to of Lhe Mindan}s Second
Organizational Bureau).
Takanobu Fu~ishima, a scholar on Korean questions, said; "They can come
across the cease-fire line (38th parallel) or come by sea directly from
North Korea to gather information on South Korea. There are any number
of Korean~ gathering military information. They even get it through the
Soviet Union, which has satellites ,just as the United States. They can get
enough information on Japan openly, even without spending so much time and
effort. The announcements by the police of NortTi Korean spy incidents
are probably made with some purpose in mind."
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Certainly there are cases of persons who were induced to go secretly to
North Kores. One such case was that of the brothers Kim Ch'ol-u (53), a
former director of a steel plant, and Ch'ol-u (50), a former assistant
professor at a North Korean university, who were arrested in South Korea
in 1973 for violatiug the laws against communism and were released at
the end of last year. According to people who supported these men, the
reasons they were induced to go to North Korea seem to have been to viait
brothers and sisters in North Korea and to get a look at steel plants in
North Korea. There was also the case of Kim Yong-chak, an assistant
professor at International Christian University, who reportedly was
arrested for violation of the anticommunist laws when he visited South
Korea in 1974 because he had gone to North Korea [to locate] ris father,
about whom he had had no news, and because, as a student of political
science, he had an interest in North Korea. ~
In these cases, as in others, it does not seem that the people involved
received any special training or instruction in espionage activities when
they went to North Korea. Even in the case of Yi, who was arrested by
the Saitama Prefecture police: although he reportedly was instructed "to
pick up radio signals which the other side would be sending," his lawyer,
Mr Nakahira, says that when the encrypted signals from North Korea which
were on the tape were decrypted, they were "vague messages" which said
such things as "study the ideology of Kim I1-song." Mindan's Deputy Director
Yun says: "Even when they take people to North Korea, the purpose is to
have these peop.le make distrinctions in their minds; they do not do anything
of great consequence with them." Suimming up what has been quoted above,
it is safe to assume that the purpose of the "North Korean spies" is to
"brainwash" Koreans in Japan.
Rumors of Police Involvement
Chosen Soren (General Association of Korean Residents in Japan) which has
connections w3th North Korea, flatly denies allegations of "espionage
activities from North Korea."
"North Korean spy incidents are fabrications which are part of a policy
of hostility toward the Democratic Republic and are aimed at disrupting
Chosen Soren and preventing solidarity with the people of Japan. Spying
incidents are announced even when crewmen from fighting boats in distress
drift ashore in Japan. Even though Korea is divided politically, it is
only natural that there be association between fellow Koieans from the
North and the South wh~ are mutually related by blood and other ties.
There are times when, even though it is known that a person has been
smuggled i.n from the South, he is taken care of as a fellow Korean.
These cases, too, are called ~'spy incidents." Even though an issue has
been made of North Korean spy incidents, nothing is said of South Korean
spying incidents even though the activities of the KCIA in Japan are
manifest, as in the Kim Tac-Chung affair. It is strange that there is a '
tendency for these things always to be announced when the unification
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movement in South Korea or the struggle to protect the rights of Koreans
in 3apan over immigration ordinances or other such issues is intensifying"
(Director Ha Ch'ang-ok of the Social Affairs Department of Chosen Soren).
According to Chosen Soren, there have even been cases in which men, who
had gone to Chosen Soren mewi.;:rs because they "wanted to seek asylum in
North Korea" or they "were having difficulties in their lives," have later '
ran to the police "asking for help because they might be taken to North '
Korea." Such cases have become spy incidents.
Mr Katsuji Sato, who said there are many mys ter.ious incidents, added:
"There have also been cases of double agents wh~~m the security authorities
send to North Korea and who return to Japan." Ke mentioned the incident
involving the Kyokuyo [TC 2900,2550] Maru in which arrests were made in
Shimane Prefecture in 1971. In this case the ship owner and captain were
arrested for violating the immigration and emigration control c~_dinances,
on the grounds that while feigning fishing op erations they were transporting
Korean residents of Japan to North Korea in their fishing boat. The
first trial in Matsue, however, reached a decision of not guilty on the
grounds that the defendants could not be hel d responsible, because the
police authorities knew of planned secret departures in advance and the
defendants believed they had police approval."
This verdict was later overturned in Hiroshima Superior Court, which handed
down a suspended prison sentence. Mr Sato, however, says: "There is _
sufficient reason to suspect that the security authorities were involve3;
for example, people who were supposed to have gone to North Korea on this
boat have returned to Japan after 4 months." Attorney Nakahira also has
suspicions. He said: "Vessels which should readily be known to be
smuggling from North Korea are sometimes apprehended and sometimes nut.
This is probably because there are cases whi ch would be awkward for the
security authorities if they were made pulilic."
Indications of Humanitarian Neglect
Commentator Koichiro Yoshihara said: "There is a long history of people
coming secretly from Korea to Japan to live or to meet relatives from whom
they have been separated. Entry by Koreans into Japan should be guaranteed
from a humanitarian and moral standpoint. Even if North and South Korea
are spying on one another, there is no need for Japan to say anything
about spy incidents or the like."
Nobuo Nakagawa, a scholar on Korean questions, expresses another view,
"It is not strange that there should be activities for the expansion of
ideological and political influence in order to unify Korea. What is to
be avoided is lumping whatever touches upon Japanese domestic law under the
heading of spy activity."
Wang Song-so, another student of Korean issues says: "The North Korean
spy incidents are bound up in problems with the system in Japan, which,
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in the alien registration laws and so forth, treats Koreans residing in
Japan in special ways. There is a feeling that both the police and the
immigration authorities serve as obstacles to the Koreans residing in.
Japan."
Mr Ch'oe, chief of the Culture and Information Office of the South Korean
Embassy, said: "When one has lived for a number of years in other countries,
one can have civil rights and the right to vote. However, Koreans residing
in Japan, no matter how many years they live here, and even if they are
second or third generation and speak no Rorean at all, are treated forever
in a seaparate way through their alien registration documents. There is
not another country in the whole world which carries on the legal racial
discriminat ion that Japan does."
Katsu~i Sato wishes that "even though unification of North and South Korea
will be dif ficult, efforts will be made to remove at least the sharp confron-
tation." These "North Korean spy incidents," however, cause controversy
about Japan's attitutde toward Korea.
COPYRIGHT: Asahi Shimbun Tokyo Honsha 1980
9111
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N. KOREA/FOREIGN RELATIONS
GIST OF KIM' S STATEMENT MADE TO LADP DELEGATIOt1 LEADER
Tokyo MAINICHI SHIlrIDUN in Japanese 15 Sep 80 p 2
_ [Tokyo U. S. Embassy Translation]
[Text] (Pyongyang, September 14, Correspondent Kawach,i) The gist of the
statementa made by President Kim Ii-Song og the Democratic People's Re-
public of Korea, when he met with the LIIP Afro-Asian Affairs Research Coun-
cil's mission to Korea, on the 14th, is as fcllows:
On the Non-Aligned Neutrality Policy: At first, there were various situa-
tions which caused difficulties, but at the ~resent stage, the Korean peo-
ple's happiness can be secured with the non-aligned neutrality policy. We
will not accept any interference at all from any big powers or other na-
tions, and there is no such possibility, ei~her.
On the North-South Unification Problem: North and South Korea's admission
into the UN at the same time will mean the confirmation of North ~nd
South Koreas becoming a divided state, on the international stage, and we
are absolutely opposed to it. We are also against the so-called cross-
recognition. The changing of the Armistice Agreement between Korea and the
US into a peace treaty is important. In such a case, South Korea's (ROK)
participating in the negotiations as an observer will be allright. It can
take part in them, whenever necessary. If the Armistice Agreement is changed
into a peace treaty, we will dissolve, simultaneously with the conclusion
of the peaae treaty, the military alliancea which we have with China and the
Soviet Union.
On the Chon Tu-hwan Structure in the ROK: In the South (ROK), a fascist
regime (Chan Tu-hwan Regime), which oppresses the people, based on the
pretext of a threat from the North, has been established.
Problem of Japanese Wives: We welcome the visits to Japan by Japanese -
wives (returning home for a visit) and the visits to Korea by their fami-
lies living in Japan. I ask you to push talks with the Korean Workers
Party and the External Cultural Liaiaon Council on procedural problems.
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On Economic Interchange between Japan and Korea: Let us expand econamic
interchange and trade, without fail. In the past, the Japaneae side has
_ been conducting trade through small firms. From now on, it will be better
for big firms to have transactions with each other. Our country has min-
eral resources. If they arP developed in a positive way, with Japan's
extending technological co-operation, it should be a plus for both sides, -
because we are neighbors, and our country is prepared for it. Let us have
interchange between experts, first of all, and check into the matter. We
are also interested in the fact that an East Asia Trade Study Association
has been established in Japan's business circles.
On Views for a Southward Advance: Our country has no intention of advan-
cing southward, and it is also not possible for us. We are now in the
midst of making efforts for the improvement of the people's livelihood
through peaceful construction. Even today, military expenditures are a
factor of pressure on the people's livelihood, and we are not thinking of
going into combat. The US side should know this, too.
On the Sixth Congress of the Korean Workers Party: There will be no big
reshuffle of personnel as at the Chinese National People's Congress (ex-
cept for the replacing of some old-age leaders). As for my son (Kim
Chong-I1) and me, we are comrades in the Workers Party, at the satne
that we are father and son. He is now working very hard for the people.
He is in very good health.
COPYRIGHT: Mainichi Shimbunsha 1980
CSO: 4120
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N. KOREA/FOREIGN RELATIONS ~
BRIEFS
POSSIBLE DPRK-PHILIPPINES TIES--Manila (Kyodo-Reuter)--North Korea has
put out feelers to the Philippines on the poss ibility of opening diplomatic
relations, President Ferdinand Marcos said Saturday. He said h:ts wife
Imelda, who is human settlements winister, had been involved in the
approach, but did not indicate his view or the possible outcome. The
Philippines has longstanding relations with South Korea, but also opened
diplomatic links with China, North Korea's a11y, in 1975. LText~
(Tokyo JAPAN TIMES in English 22 Sep 80`p 5~
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CSO: 4120 END
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FOR ~FFICIAL USE ONLY
APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000300040027-5