Tracking Number:  395147

Title:  "Gallucci: Plans Move Ahead for ROK Reactors for North Korea." Ambassador at Large Robert Gallucci announced that North Korea has agreed to let South Korea supply it with light-water nuclear reactors. (950613)

Date:  19950613


06/13/95 GALLUCCI: PLANS MOVE AHEAD FOR ROK REACTORS FOR NORTH KOREA (Transcript: 6/13 press conference in Seoul) (2470) Seoul, June 13 -- The Korean Energy Development Organization (KEDO) executive board has concluded plans to provide two reactors to North Korea under the Agreed Framework.

Ambassador Gallucci, chief U.S. negotiator for these talks, told reporters during a press conference held after the executive board meetings that the light water reactor project to be provided to the DPRK will consist of two reactors of the South Korean standard nuclear plant model. A South Korean prime contractor for the project was also selected.

"KEDO will arrange for a site survey in North Korea and will arrange a meeting between KEDO and the DPRK as soon as possible to negotiate the outstanding issues of the light water reactor supply agreement," Gallucci said.

After three weeks of separate talks in Kuala Lumpur, the United States and North Korea agreed on terms to facilitate the light water reactor (LWR) project specified under the October 1994 U.S.-DPRK Agreed Framework.

In a joint statement released June 13, Deputy Assistant Secretary Thomas Hubbard and DPRK Vice Minister Kim Gye Gwan agreed the Korean Peninsula Energy Development Organization (KEDO) will finance and supply the LWR project, conduct a site survey and select a prime contractor and program coordinator for the project.

Gallucci said that "It is our hope that progress can now be made on implementing the Agreed Framework and with it initiating a dialogue between North and South that is so essential to the ultimate success of the Framework."

Following is a transcript: (begin transcript) AMBASSADOR CHOI: As you know already, in Kuala Lumpur the DPRK and the United States meeting has already been concluded and at this time a joint press release has already been issued.

The executive meeting of the KEDO board was held in Seoul today for the early implementation of the DPRK and U.S. agreed things in Kuala Lumpur as has already been stated in the press statement. I am taking this opportunity to express my heartfelt thanks for Ambassadors Gallucci and Endo for coming to Seoul for the KEDO meeting.

AMBASSADOR GALLUCCI: Thank you, Ambassador Choi. There is going to be a formal press statement issued that the three of us have agreed upon following the executive board meeting of KEDO and I would like to just make some introductory remarks to start off the press conference.

I am pleased to announce that the light water reactor project to be provided to the DPRK will consist of two reactors of the Korean standard nuclear plant model. In addition to that determination, the KEDO executive board determined today that the reference plant to be designed in the contract between KEDO and the prime contractor on the light water reactor project will be Ulchin three-four. The board also determined that a qualified firm from the Republic of Korea will be selected as the prime contractor to carry out the light water reactor project, including design, manufacture, construction, and management, following a contract between KEDO and the ROK prime contractor. In this connection KEDO will begin discussions with KEPCO.

In addition, KEDO will arrange for a site survey in North Korea and will arrange a meeting between KEDO and the DPRK as soon as possible to negotiate the outstanding issues of the light water reactor supply agreement. Ladies and Gentlemen, as you know, this action of the executive board of KEDO complements the understandings reflected in the U.S.-DPRK joint press statement issued in Kuala Lumpur this evening. That joint press statement reaffirmed commitments to the Agreed Framework, to its implementation, and in so doing to the freeze on the nuclear program in North Korea. That joint press statement also reaffirmed our intention to proceed with efforts to safely store spent nuclear fuel in North Korea and to reach agreement on cooperative measures to permit the delivery of heavy fuel oil. The joint press statement between the U.S. and the DPRK also confirmed that KEDO and the DPRK will conduct future lwr supply contract discussions.

Perhaps most important the question of the reactor model and the ROK's central role were resolved with agreement that KEDO will select the model and the prime contractor.

Finally, I want to note that today's announcements permitting the implementation of the agreed framework resulted from close consultations between the ROK, the government of Japan, and the United States.

It is our hope that progress can now be made on implementing the Agreed Framework and with it initiating a dialogue between North and South that is so essential to the ultimate success of the Framework.

Ladies and gentlemen, your questions. Q. According to the joint DPRK-U.S. Joint Statement, in number one section, it clearly states that KEDO under U.S. leadership would implement the Agreed Framework. Plus it said that the U.S. would serve as the principal point of contact which contradicts the South Korean position that we want a South Korean model to be adopted and that South Korea would play a key role. The United States has provided an agreement which has a legal power to deal with Korea; however, the U.S. did not provide such a legal position to North Korea but only it gave a personal letter from President Clinton. What is the background or reason for that?

GALLUCCI: The question contains assumptions which are incorrect. The language that you refer to in the joint press statement between the U.S. and the DPRK parallels language that you will find in the Agreed Framework between the U.S. and the DPRK negotiated last October in Geneva. The language reflects our willingness, the willingness of the United States, to continue to involve ourselves in the implementation of the Agreed Framework, including the portion dealing with the light water reactor supply within the context of KEDO. The executive director of KEDO has been named. He is an American. The deputies are nominated from and will come from the Republic of Korea and from Japan. So, the United States will continue its involvement as will Japan and the Republic of Korea. There is absolutely no ambiguity about the reactor model, no ambiguity about the reference plant. It is not only unambiguous with the action of the KEDO board today, it is also explicit. I find it inconceivable that one would still question, with the combination of the joint press statement in which the DPRK acknowledges that KEDO will select, and with the executive board of KEDO acting this evening, having selected, that anyone can question what the future is in this connection.

Q. Question one, do you believe this is the beginning of the end of North Korea's isolation in the international community? Two, let me read the last sentence of last paragraph of page one of the joint press statement. Quote, in this regard U.S. citizens will lead delegations and teams of KEDO as required. Could you give us your definition of what these U.S. citizens are?

GALLUCCI: I didn't quite understand the end of the second question, that referred to the role of the U.S. leadership of teams. Could you pose the question again.

Q. U.S. citizens, who they are? GALLUCCI: Who they are? Let me answer the second question first. That language is designed again to commit the United States to remaining involved in the implementation of the light water reactor project element of the Agreed Framework. The U.S. citizens would be those that KEDO decides to engage in work to support the light water reactor project. They could, in fact be employees of KEDO in the future. They could be contractors that KEDO employs in order to implement the light water reactor activity.

With respect the first question which posed a prospect of North Korea coming out of its international isolation. I would say that indeed, yes, our hope is that among the benefits of the Agreed Framework in addition to freezing and ultimately dismantling a nuclear program that we believe was designed to produce nuclear weapons, would come the opening of North Korea not only economically, but politically. It would be accompanied, we would hope, by a rapprochement between North and South -- a dialogue, between the two and ultimately the reduction of tensions on the Korean peninsula.

Q. I have two questions. One for Mr. Gallucci and one for Mr. Choi. For Mr. Gallucci. Looking ahead little bit what do you see as the main hurdle still be overcome to implement the Geneva Accord? And given how arduous it was to get this agreement on the type of reactor and given that you're a little Behind the goal of having it done by April, is this an indication of how difficult it's going to be from here on in to continue to implement the Agreed Framework? For Mr. Choi, could you talk a little bit about how many, the process from here, how many South Korean engineers, businessmen, and so on do you see going in to North Korea? And what kind of economic relations do you see springing from this agreement?

GALLUCCI: I rather think that questioner knows that the answer is that if we have just leapt a rather high hurdle in what was accomplished today here in Seoul and what was accomplished over four weeks in Kuala Lumpur, that there are other hurdles ahead. The elements of the Agreed Framework include the establishment of liaison offices in North Korea and the United States, the delivery of heavy fuel oil and the agreement on cooperative measures, including the monitoring of the disposition of the oil, include the safe storage of the spent fuel and ultimate shipment out of the country of that fuel, include the very complicated business of negotiating the light water reactor contract and then actually constructing thousand megawatt light water reactors in North Korea. And all of this going on while the nuclear program in North Korea is frozen and then ultimately completely dismantled. That's quite a list. And, if it's all going to be successful we say again and we cannot say often enough, it must be accompanied by the beginning of dialogue between North and South. None of this is going to be easy. I don't expect that we can look forward to smooth sailing in all these areas. I hope that we can move more quickly than we did over the first seven months or so but I think what we need to remember is that the Agreed Framework was negotiated because it served the interests of many countries and solved a very grave threat to regional and international security and we all must work very hard at implementation. No, this will not be the last hurdle.

It is evident that in order to carry out the light water reactor project, several Korean engineers and experts shall go to North Korea; but how many people should go to North Korea? It hasn't been decided yet. Probably hundreds or more than hundreds of people should go to North Korea. And also several companies should go to North Korea in order to carry out the LWR project. And, here the most important thing is the genuine cooperation between South and North Korea. And also through this process not only the personal but also goods and services exchange will be carried out. And in the meantime South and North Korean relationship will be improved and we hope that happens, too. Based on this on this of course, all these processes are not directly related with economic cooperation but we hope that the exchanges of this process will give a positive influence to economic cooperation.

Q. Is it possible to say that agreement reached in Kuala Lumpur paves the way to the exchange of liaison offices between Washington and Pyongyang and even to establishing further later diplomatic relations between the U.S. and North Korea?

GALLUCCI: Under the terms of the Agreed Framework the United States and the DPRK agree to establish liaison offices in each others' capitals as soon as consular and other technical, issues are resolved we have had a series of meetings in Pyongyang and in Washington and there are more meetings planned to resolve those issues. They are not yet fully resolved. As soon as they are, we are prepared to proceed. However, when you talk of further improvement in U.S. DPRK diplomatic relations, I again refer you to the language of the Agreed Framework, which notes that further improvement, in essence, will follow the resolution of other issues of concern. And we have told the DPRK that we have indeed other issues of concern. And I will just mention that we are quite concerned about the, North Korean ballistic missile program, and its exports of ballistic missiles. We are concerned about the forward deployment of its conventional, its large conventional force, forward deployed near the DMZ. These are a couple of the issues which are high on our list of major concerns. So we would hope, of course, as I said earlier, that a number of things would happen in an atmosphere in which the Agreed Framework is implemented including the improvement of relations between the DPRK and the rest of the world, including the United States. But there are a number of issues that are going to have to be addressed in that connection.

Q. My question is addressed to Ambassador Endo related to the financing burden. KEDO will hold a series of meetings with North Korea in order to carry out the lwr project. And since Japan is a member of KEDO it shall take part of in the financing. So what proportions will Japan share in the burden of financing the LWR project? And my second question is related with the additional or supplementary facility to be provided to North Korea. KEDO said that some or part of the additional facility will be provided to North Korea. And then how will it be allocated among the three countries regarding these additional facilities?

AMBASSADOR ENDO: Japan will contribute significantly to the financing of the KEDO project. How much, what percentage still remain to be decided, because before that we have to send a survey team to the site of two reactors. Then we'll be able to get to know how much will be necessary for the cost of construction.

Therefore, at this moment we can say that Japan will be significant contributor financially to the project. And about your second question, additionally, it will also be discussed later and again through negotiations with North Korea and through the findings of our site survey we'll be able to get to know how much altogether will be necessary.

(end transcript) NNNN

File Identification:  06/13/95, EPF203
Product Name:  Wireless File
Product Code:  WF
Document Type:  TRA
Thematic Codes:  1AC
Target Areas:  EA
PDQ Text Link:  395147