Korea

Grand design for a Korean 'peace structure'
By Jaewoo Choo

SEOUL - While the South Korean Ministry of Foreign Affairs and Trade has fervently denied a report on Friday by Japan's Mainichi Shinbun that Seoul is thinking about supplying North Korea with gas in exchange for the latter's abandoning its nuclear program, the report has offered observers of Korean affairs a clue to what President-elect Roh Moo-hyun means by solving the nuclear crisis in "multilateral ways".

The timing of the report is also interesting. It appeared at the conclusion of US assistant secretary of state James Kelly's visit to China and before his arrival in Seoul, and just before Russian Deputy Foreign Minister Alexander Losyukov's arrival in Pyongyang. Against this background, we can assume that there is a far-reaching deal - or set of deals - behind Roh's grand strategy of a multilateral approach to the problem of North Korea's nuclear program.

Adding to the peculiarity of Roh's approach is his recent statement on South Korea's relations with the United States on a television program on Saturday. Despite his comforting remarks during his visit to the ROK-US Combined Forces Command (CFC) stressing the importance of the Seoul-Washington alliance, on the TV program he, once again, took an abrupt turn on his view of the relationship. Roh said he intended to make changes to the current bedrocks of bilateral relations, such as the mutual defense treaty, the Status of Forces Agreement (SOFA) and the format of the two countries' alliance. His stance is substantiated by his prior announcement on Friday of building a so-called "peace structure" on the Korean Peninsula. "Peace structure" is nothing new. It has long been proposed as one of the most viable and effective measures to settle the military-confrontation problems lingering from the Korean War armistice treaty concluded by the United States, China and North Korea.

In all these developments, one thing can lead to another. If Roh is really to solve the Korean Peninsula problem in the context of a peace structure, it will require a great deal of wheeling and dealing involving the numerous players, namely the United States, Russia and Japan, as well as North Korea. The blueprint of the so-called peace structure is to create a peace on the Korean Peninsula by reciprocal recognition of the two Koreas by the neighboring states, including Russia, China and Japan, as well as the US. Based on this cross-recognition of the South and North, the theory calls for a floor where disarmament and/or conventional arms reduction, a settlement of the military confrontation along the 38th parallel, and confidence-building measures can all be discussed and negotiated. Settling these scores, however, requires first that the Korean War armistice is replaced by a peace treaty, which would have to include South Korea as a signatory state. To guarantee the peace created by such a treaty, a non-invasion clause would have to be inserted, because confidence measures and trust between the concerned parties are very much lacking at this stage.

In theory, establishing a peace structure seems feasible. In practice, unfortunately, it is not. The United States and Japan have yet to recognize North Korea diplomatically. That makes it much harder for South Korea to be included in a peace treaty replacing the armistice. In addition, the US still regards North Korea as one the "axis of evil" nations on top of being a rogue state. Even if North Korea were to be emancipated from the axis of evil label, it would still have to confront the reality of being a rogue state on the United States' blacklist, a label that only the US public and Congress have the right to remove. Furthermore, since there is no mutual trust or confidence between Washington and Pyongyang, implementing arms reduction would be a very difficult task, not to mention bringing the North into such a dialogue.

If a peace structure is to be realized as the South Korean president-elect would like to think, he will need a handful of cards. These cards must have an appealing, yet appeasing, effect on all concerned nations, North Korea, the United States, Japan and Russia. It is currently speculated, with much caution, that Roh could realize this end by undergoing four different phases of dealing and wheeling.

Roh obviously has to deal with the United States first. Under his leadership, his government will have to carry through a seemingly impossible mission to sell its belief in the necessity of arms reduction that would have to include reduction of US military forces in Korea, if not their complete withdrawal. To sweeten this proposal, Roh could make a few offers to Washington. As a tradeoff for reducing the US force, he could propose a buildup of South Korea's military system with a big purchase of US military hardware. There is a precedent for this, in what South Korea did at the end of the Desert Storm campaign in 1991. That conflict so effectively demonstrated so many new weapons that US allies ended up purchasing them. The United States' impending attack on Iraq may have similar consequences in promoting new weapons. Roh could utilize the opportunity to his advantage to work out a deal with the United States, a tradeoff of arms reduction and restructuring the current military system with a bulk purchase of new weapons.

If such a deal with the United States were struck, Roh could then move on to North Korea with much more flexibility and maneuverability. With an agreement for arms reduction in terms of both conventional weapons and US military forces in his hands, Roh would be able to offer a guarantee that North Korea would not be invaded by any nation that it perceived to be a threat. In exchange, he would be able to demand that the North accept inspection on its nuclear system and, subsequently, give up all its nuclear-development programs, thereby realizing the spirit of the agreement concluded in 1991 between the two Koreas to denuclearize the peninsula. The North's acceptance of such a scheme would enable Roh to upgrade the scale and degree of his pursuit of a "Sunshine Policy", meaning greater economic aid and support for the North. To achieve this end, he would have to be much more lenient on South Korean firms investing and engaging in economic activities in the North. Naturally, constitutional reform in respect to activities concerning North Korea would have to follow.

China would favor this kind of scenario, as it dearly wishes to see a nuclear-free Korean Peninsula as well as a peaceful Korea. However, one thing China would give serious thought to is the extent to which declining US influence and presence on the peninsula would allow Japan to become a "normal" state. Nonetheless, since the peace-structure scenario is conditioned by a multilateral security arrangement, ie, a multilateral cooperative system, Chinese anxiety over Japan's militarization could be soothed.

As for Russia and Japan, there are a couple of cards Roh could play. He could help Russia's economic recovery through the development of gas pipelines. There are two potential gas-reserve areas that attract South Korea's attention and interest, one in Kovyktinskoye/Irkutsk and the other off Sakhalin. At the moment, the latter seems more favorable as its developer is a US firm, ExxonMobil, while the former's developer is British Petroleum (BP). As well, Sakhalin is geographically much closer to the Korean Peninsula. In the end, South Korea's investment in the Sakhalin pipeline could be a win-win situation for both Russia and the United States: while Russia would benefit from an estimated US$2.7 billion project, the US would secure a permanent consumer.

As far as Japan is concerned, with North Korea's nuclear program scrapped and a multilateral cooperative security system at work, it couldn't be much happier, for a couple of good reasons. One is that it could also become a beneficiary of the gas-pipeline project carried out by South Korea. While offering a connection to the pipeline, South Korea could be assertive in its demand for other assistance and support to the North's economic development. Another possible incentive that South Korea could present to Japan is an offer to speed up feasibility studies on a free-trade agreement. As both states wish to complete the study at the earliest possible time so as not to lag behind the international trend to FTAs, they could do so with a much more lenient posture from the South Korean side. Other cooperative issues such as sharing the burden of economic assistance and aid to the North could also be pushed through at a dramatic pace.

All these developments and scenarios will be contingent upon the United States' future stance on the Korean Peninsula affairs. The recent statements by US government officials and President George W Bush on North Korea, however, give some reason for confidence. They indicate a significant change in the United States' position on North Korea, retreating from its hardline policy and adopting a more conciliatory approach. From the beginning of this year, it was Bush who proclaimed his desire to solve the nuclear crisis through dialogue and revealed his unwillingness to take any kind of military action. These principles of dialogue and no invasion were reiterated and confirmed by Kelly throughout his entire tour of East Asia, and once again by Deputy Secretary of State Richard Armitage in Washington on Sunday.

Under the current softened circumstances, Roh's special envoys are scheduled to visit the United States, China, and Russia next month, and a visit by Roh himself to Washington is tentatively set for March. If things go smoothly, Roh will be placed in a much better bargaining position to realize his grand design of establishing a peace structure on the Korean Peninsula.

Jaewoo Choo, PhD, is a research fellow with the Trade Research Institute, Seoul. The opinions expressed in this article are his own.

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Jan 22, 2003


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