DATE=12-16-2000

TYPE=CORRESPONDENT REPORT

TITLE=KOREA TALKS

NUMBER=2-270548

BYLINE=HYUN-SUNG KHANG

DATELINE=SEOUL

INTERNET=

CONTENT=

VOICED AT:

INTRO: North and South Korea have agreed to set up a joint committee to discuss ways of helping the North rebuild its faltering economy. The committee is part of a package of measures announced at the end of five days of heated ministerial-level talks in Pyongyang. Hyun-Sung Khang reports from the South Korean capital, Seoul.

TEXT: North and South Korean negotiators issued a joint statement Saturday saying an economic panel would be formed to find ways of ensuring balanced economic development and co-prosperity between the two Koreas. Issues to be discussed include North Korea's request for electricity from the South, the construction of an industrial complex in the North, as well as establishment of rail and road links between the once-bitter rivals.

The committee is to begin its work before the end of this month.

Officials also agreed to a third set of family reunions between the two Koreas. The next round will take place in February. There was no agreement, however, on a South Korean proposal to create a permanent meeting place for separated family members.

Another topic on the agenda was the North's proposal to share its fishing zone near the border, between the two Koreas.

The agreements follow days of intense negotiations in Pyongyang. The Cabinet-level talks had stalled when Pyongyang asked Seoul to build power plants in the North to alleviate severe energy shortages. The South had rejected the proposal, saying the issue should be raised at another meeting.

Instead of building a new power plant, Seoul is now said to be considering providing the North with some of its surplus electricity through a proposed new power line that would be built across their heavily-guarded border.

The just completed talks were the fourth round of ministerial negotations to take place since the unprecedented inter-Korean summit in June. There is a growing feeling among experts and officials in the South that as the talks delve deeper into issues separating the two sides, the pace of improvement in relations is slowing down. Deep new differences were reported at these latest talks.

South Korea has been eager to push forward more humanitarian projects, which the North appeared more interested in winning economic assistance from Seoul.

The latest meeting ended with an agreement to hold a fifth round of talks next March. (signed)

NEB/HSK/PFH