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    Korea
     Feb 14, 2007
Page 2 of 2
North Korea accord: Now for the hard part

By Donald Kirk

almost a sellout - a concession to North Korea's shrewd diplomacy.

Bolton, as negotiators were winding up in Beijing, appeared in television broadcasts saying that the deal sent "the wrong signal to proliferators around the world", giving the impression that US State Department negotiators were ready to capitulate. He expressed the hope that President George W Bush would turn it down - something that clearly was not going to happen, since Hill



presumably agreed to the terms of the accord with full approval from Washington.

The biggest winner may be China, since the Chinese can take credit for having written the agreement, and the Chinese host and chief delegate, Wu Dawei, read it in carefully deadpan, bureaucratic style in a live television broadcast.

The conclusion of the deal came a day after the whole show appeared on the verge of failure when Hill rejected North Korea's bargaining position on Monday and seemed ready to go home. The participants agreed to extend the talks for one more day, though, waiting for North Korea to come to somewhat more reasonable terms.

Hill, before talking resumed on Tuesday, said the document was "excellent" - clearly a personal triumph for a diplomatic exercise that had reached another high point on September 19, 2005, with agreement on a "statement of principles".

The agreement reached on Tuesday fell within the confines of that statement, which promised huge aid for North Korea in return for its giving up its nuclear program. North Korea the next day, however, said it wanted the aid before doing anything else - and then refused to return to the table after the US Treasury Department blacklisted Banco Delta Asia (BDA) in Macau, calling it a conduit for counterfeit US$100 bills printed in Pyongyang and a clearing house for the sale of narcotics and arms.

North Korea ever since has been demanding relief from the impact of the US action on BDA, which forced the bank to freeze $24 million in North Korean accounts while banning US firms, or firms doing business with US firms, from doing business with BDA. More important, the Treasury Department ban meant that no international financial firm anywhere in the world would have anything to do with North Korea, leaving trade with China as basically the the country's only commercial window on the world.

Although left unspecified in Tuesday's agreement, the general understanding is that the US and North Korea will also come to terms on BDA, freeing up perhaps half the $24 million and removing the ban on dealing with the bank. While the sum is small, the implications in terms of North Korea's access to international markets is all-important for the regime of Kim Jong-il.
The agreement also calls for other forms of relief that North Korea has been demanding for years, including serious US consideration of removal of North Korea from the State Department's short list of "terrorist" states - a category that includes Iran, the other power whose nuclear program is a matter of serious US concern these days.

A number of contentious issues are to be thrashed out in working-level groups agreed on Tuesday. Within 30 days, according to the agreement, negotiators will begin discussing such issues as the normalization of North Korean relations with the US and Japan. South Korea is to chair a forum on answering North Korea's energy needs, including its demand, unanswered on Tuesday, for 2 million megawatts of electrical power, while Russia will chair a forum on overall peace in Northeast Asia.

Yet another forum will address the issue of a permanent peace treaty to replace the truce that was signed in July 1953 at Panmunjom marking the end of the Korean War. North Korea, in that forum, is expected to press its demand for withdrawal of the 29,500 US troops still in South Korea - an issue that is sure to turn into an exercise in rhetoric. Since the truce was signed only by the US, North Korea and China, a sub-issue will be whether South Korea should also be a signatory to a peace treaty.

Although innumerable details remained unresolved, the participants seem ready to go ahead in a spirit of flexibility. A South Korean official, talking to South Korean reporters, indicated this spirit when he said the North could receive the heavy fuel at its own pace.

"If it wants to receive all 950,000 tons within a year, it only has to finish the disablement in a year," said the official. "If it does in two years, it will be provided with the amount in two years."

Journalist Donald Kirk has been covering Korea - and the confrontation of forces in Northeast Asia - for more than 30 years.

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