UNCLASSIFIED U S Department of State Case No F-2014-12152 Doc No 005648226 Date 11 25 2014 RELEASED IN PART PTQ0834 Classification Extended on 10 07 2014 Class CONFIDENTIAL Authority DSCG 114- Declassify on 04 22 2023 CONFIDENTIAL PT00834 PAGE 01 SEOUL 02357 01 OF 03 2308302 ACTION EAP-01 INFO LOG- 00 ACDA- 08 AID- 00 C- 00 DODE-OO 00 IMMC- 01 IM- 01 INR-OO IO- 00 L-01 ADS- 00 M-OD NSAE-OO DES-01 OIC-OZ OMB-01 PM-OO P-OO CIO-OO SGT-00 SSO-OD T-OO SGHD-OO PMB-OO DSCC- 00 DRL- 04 G- 00 SAS- 00 l028W 364DDB 2308302 38 2308272 APR 98 FM AMEMBASSY SEOUL TO SECSTATE WASHDC IMMEDIATE 0085 I I A SECTION 01 OF 03 SEOUL 002357 E O 12958 DECL AFTER KOREAN UNIFICATION TAGS PREL KS KN SUBJECT SCENESETTER FOR SECRETARY VISIT TO SEOUL CLASSIFIED BY THE AMBASSADOR REASONS 1 5 B D SUMMARY 1 C YOUR VISIT MAY 1-2 CONTINUES AN INTENSE ROUND OF HIGH-LEVEL ROK-US DIPLOMATIC CONTACTS WHICH BEGAN WITH UNDER SECRETARY RECENT TALKS IN SEOUL AND CULMINATES WITH PRESIDENT KIM STATE VISIT TO CONFIDENTIAL AUTHORITY Paul Blackburn Senior Reviewe CONFIDENTIAL PAGE 02 SEOUL 02357 01 OF 03 2308302 WASHINGTON IN JUNE THIS SERIES OF VISITS WILL ENABLE US TO SOLIDIFY OUR EXCELLENT WORKING RELATIONSHIP WITH THE NEW ROK ADMINISTRATION REAFFIRM THE STRENGTH OF OUR ALLIANCE AND ENCOURAGE KIM AND HIS KEY ADVISORS TO PRESS ON WITH THE ECONOMIC TRADE AND FOREIGN POLICY INITIATIVES THEY HAVE BEGUN TO FLESH OUT UNCLASSIFIED U S Department of State Case No Doc No 005648226 Date 11 25 2014 191190 9838179900 300 9390 91918 IUSLUIJBCISG '8'0 LVH L 8W31808c ACI3W38 0 L A N0038 _I_80f 8VH V3808 3HJ H LV3N38 O '9 N0 883M0c NVISV J 8V3HJ 8ON CINV HJJNI OIWON003 83LV38E GNV 8831 800IJ I8WV 8VH WIM H900HJ NI 3O 8303 OI L83WOCI O L L00 BNIHOV38 W80338 3WI 800800I8 SNIOV88W3 A8 8088388 83N 0cl OJ A13AIJ 8388V CI3AOW 8VH WIN O 7 '3088 CINO8 NOI383A08 NOITII8 17$ 201038830008 CINV i830 30 L28 83A0 30 N0 LN3W3380V CI3HOV38 081V SVH 9808 8H LNOW 8003 803 3HJ NI N338 8VH 3CIV8J H L008 CINV 3AVH 83A83838 39NVHOX3 NOI3803 83A0 CI3NIV038 SVH AON38800 3I-LL 50NI0V8000N3 38V SNEJIS 2098093 80 30 L0 9830 30 LV 3H I N0 CINV CI3 L3I8CI 30NI8 V3808 CIVH LVHJ 38N38 30 N338 3AVH 8833M M33 3H L O 8 3HJ NI Tin I CIN3 L8V3H I 80N 803 O LVN 30 SIH CINV LV 81 80333 83CII8N00 8N830N00 CINOA38 3AOW 81000 ONLL 3HJ N330 CINV 3GV8J 3383 0838 OJ I N3W LIWWOO 8963808 8 L80OCI ANV i838 OJ 0100M 3M 8V 8 10838 3 1 38ON00 NO J 08 108 800l 38d 800 NI N3 L30 i808 L CINV 8OGNVO 30 383H380WLV NV SNILV38O NO XINO 80003 010OH8 llWW08 803 LVHJ 0808 813A31 3H1 N030 081V NVO 383H 89NIJ 33W 800A 808IAGV MI80038 CINV N9I3803 SNIM80NI 38010 NI 33 1 8 NV 38 TIIM LISIA 800A SIH 30NI8 EDNLL33W L88I3 8V 0 39190 9228179900 9390 31918 40 '8'0 CI3I3I88V10N0 m UNCLASSIFIED US Department of State Case NO Doc No C05648226 Date 11 25 2014 BROUGHT ON THE AND MOST OF THE IMPROVED ECONOMIC SIGNS CAN BE TRACED TO THE MASSIVE INFUSION OF IMF-LED ASSISTANCE OR UNSUSTAINABLE BELT-TIGHTENING DRIVES BY BOTH INDUSTRYAND THE PUBLIC AND WHILE KIM PERFORMANCE HAS SO FAR ECHOED THAT OF FRANKLIN ROOSEVELT -- REPLACING DRIFT WITH DECISIVE LEADERSHIP CALMING- PANIC AND PROPOSING PROFOUND EVOLUTIONARY CHANGES TO SOLVE A NATIONAL CRISIS HE IS ALSO A LEADER WITHOUT A PARLIAMENTARY MAJORITY WHO COULD FACE SERIOUS DOMESTIC AND EXTERNAL CHALLENGES IN THE COMING MONTHS CONFIDENTIAL CONFIDENTIAL PAGE 04 SEOUL 02357 01 OF 03 2308302 6 C KIM HAS SO FAR URGED KOREANS TO EMBRACE THE FINANCIAL CRISIS AS AN OPPORTUNITY TO MAKE ESSENTIAL STRUCTURAL CHANGES IN THE WAY IT DOES BUSINESS REMOVING BARRIERS TO THE FREE FLOW OF FOREIGN GOODS AND INVESTMENT IMPLEMENTING MODERN LENDING AND ACCOUNTING PRACTICES AND FORCING LABOR TO ACCEPT THE END OF LIFETIME JOB TENURE HIS DETERMINATION WILL BE SORELY TESTED THIS YEAR AS THE ECONOMY LIKELY CONTRACTS BY AS MUCH AS THREE PERCENT HEALTHY AND WEAK COMPANIES ALIKE GO INTO BANKRUPTCY AND UNEMPLOYMENT TOWARD DOUBLE- DIGIT LEVELS AS THE ECONOMIC TOLL CONTINUES TO RISE RATHER THAN RECEDE AND PRESSURE BUILDS ON KIM TO THROTTLE BACK ON THE MOST STRINGENT REFORMS HE WILL NEED BOTH SYMBOLIC AND TANGIBLE SUPPORT FROM THE USG -- BOTH TO SHORE UP HIS POLITICAL STANDING AND TO STEEL HIM TO THE TASK 7 C SOME OF PRESIDENT MOST DIFFICULT CHALLENGES WILL LIKELY ARISE FROM POLICY DISPUTES WITH THE NATIONAL ASSEMBLY WHERE THE OPPOSITION GRAND NATIONAL PARTY HOLDS AN ABSOLUTE MAJORITY WHILE KIM DAE JUNG HAS SO FAR HAD RELATIVE SUCCESS IN PASSING LEGISLATION AFFECTING THE ECONOMY HE WILL LIKELY FACE TOUGHER OPPOSITION ON CONFIDENTIAL UNCLASSIFIED US Department of State Case No Doc No C05648226 Date 11 25 2014 UNCLASSIFIED US Department of State Case No Doc No C05648226 Date 11 25 2014 CONFIDENTIAL PT06734 PAGE 01 SEOUL 02357 02 OF 03 2308302 ACTION EAP-01 INFO LOG-00 ACDE-OO AID-00 CA-02 C-00 SRPP-OO H-01 IMMC-01 lM-01 TEDE-OO INR-00 IO-OO ADS-00 M-00 DES-01 OMB-01 PA-OO PM-00 SOT-00 SP-00 SGHD-OO PMB-OO DSCC-OO G-OD SAS-OO 2308302 38 230827Z APR 98 FM AMEMBASSY SEOUL TO SECSTATE WASHDC IMMEDIATE 0086 I I A SECTION 02 OF 03 SEOUL 002357 E O 12958 DECL AFTER KOREAN UNIFICATION PREL KS KN SUBJECT SCENESETTER FOR SECRETARY VISIT TO SEOUL ECONOMIC ISSUES IN THE FUTURE AS NATIONAL ASSEMBLY MEMBERS SHOW NO SIGNS OF RESOLVING THEIR POLITICAL DIFFERENCES IN THIS ENVIRONMENT IT WILL BE PARTICULARLY DIFFICULT TO PERSUADE THE ASSEMBLY TO SUPPORT SOME ISSUES OF IMPORTANCE TO THE U S SUCH AS THE MAJOR OUTLAYS REQUIRED FOR KEDO AND THE LIGHT WATER REACTOR PROJECT AS WELL AS MARKET OPENING MEASURES WORKING TOWARD AN ENDURING BILATERAL ALLIANCE CONFIDENTIAL CONFIDENTIAL PAGE 02 SEOUL 02357 02 OF 03 230830Z UNCLASSIFIED US Department of State Case No Doc No 0056-48226 Date 11 25 2014 391190 9238179900 999C 91918 40 'S'n de'IH SESNVHO HSEHL CIEIGINCI GNV SNEIZIJJO HOINEIS A8 NO SV TIEINI 8V EIHJ NI SSENISHEI NO SNOILOIELLSEEI NO SI ATIWI GEBGEWONMOV NV WIN LSVEI GEIVMOL CINV OIWONOOE SANVWEIEIS LSEIM OJ SHVEIS EIHJ NEIN LFIO O L NVSEIS BMOH EIHJ NI SVM SV 3 CINV NI 3H O L NO SI LI CINV NO ind SVH 3H '08 SNIOCI NI SV SV O L SNOILOFIHLSNI LOIEILS SIH NEINS SVH CINV 2088093 80 20 19930 90 He s d ONLL NO 81H CIEAVS esn EIHJ LVHJ LOVE EIHJ NEAE SI EH IanI E0 LVHJ ONV OEEONI ENV EISEIHJ LVHJ O L NOSVEN ONONIS sn EAIO GELVJONFINEI SVH WIM EIHJ EENE CINV OLIVNOOINEO O L MEN SIH L Ewomam OJ ONV MON EIHJ ENVHS EM HOIHM CINV NOONVO EIITIVA EIHJ EZISVHEINE O L Ea LI 0 '6 SNIVIAIEN HINON O L AWENEI ONV NI VENOM Na O L INNIE EINVS EIHJ LV EHJ OJ ESNOESEN CINV EIONVLSISSV LOEIHIG O L EH1 NOE Ll EOVIN EAVH SINNOEEN OVEHV 4an 0 1 NOILVNIWHEIEIG SWIM CINV LNEWEENOV EIHJ O L 01 EONENEI-IOV LOINLS BOWL ONIONEE E0 NannN ONV OJ CINVNINOE EM ONVOEN SIHJ NI ONIEEI ENV SNNEONOO SSEOOV LEMHVIN NOIENOE NI - VENOM - NVISV Nno WONE OEEN TIIM EM NVISV E0 EOan E0 EOVE EIHJ NI ANLSFICINI sn CINV SSENONOO NI ONISIN SV ELLON 01 Ea TIIM LI ONV NEEO Honw SV wall EIHJ NI EONEINE TIIM VENOM INNOEEN 2mm SIH EI LVHL INNIE E0 ONV SISINO NI VENOM NOE LSVECIVEILS NOE HOA O L TIINI INIM 0 '9 3590 91918 40 UNCLASSIFIED US Department of State Case No F-2014-12152 Doc No 005648226 Date 11 25 2014 IMPROVE THE CLIMATE FOR PRACTICAL COOPERATION AND DIALOGUE BETWEEN NORTH AND SOUTH THEY SHOULD NOT HOWEVER CONSTITUTE THE ONLY LINE OF APPROACH TO THE NORTH AS THE MOST RECENT FOUR PARTY PLENARY IN GENEVA AND THE UNSUCCESSFUL TALKS IN BEIJING DEMONSTRATE IT IS IMPORTANT TO ENGAGE PYONGYANG SIMULTANEOUSLY THROUGH SEVERAL CHANNELS AS AT LEAST ONE IS CERTAIN TO BE BLOCKED AT ANY GIVEN TIME KEDO FUNDING CRISES _11 C THE ONE SPECIFIC ISSUE WE BELIEVE YOU SHOULD RAISE WITH PRESIDENT KIM AND IN MORE DETAIL WITH HIS CONFIDENTIAL CONFIDENTIAL PAGE 04 SEOUL 02357 02 OF 03 230830Z ADVISORS IS OUR GROWING CONCERN THAT CONTINUING FINANCIAL PROBLEMS COULD LEAD TO A MAJOR CRISIS NORTH KOREA IN THE MONTHS AHEAD B1 THE CONSEQUENT DELAYS IN LVVR CONSTRUCTION AND HEAVY FUEL OIL DELIVERIES RISK FUELING ARGUMENTS IN PYONGYANG THAT THE DPRK WAS DECEIVED BY THE US AND THAT THE NUCLEAR PROGRAM SHOULD BE RESTARTED 12 C IN HIS RECENT VISIT HERE PICKERING LAID OUT THE DETAILS OF OUR PLAN TO SEEK UP TO $50 MILLION DOLLARS STARTING IN FY2000 TO FUND SYSTEMS FOR LIGHT WATER REACTOR IN RETURN THE ROKG WOULD MAKE A ONE-TIME CONTRIBUTION OF $14 MILLION TO HELP RETIRE HEAW FUEL DEBT ROK OFFICIALS HAVE EXPRESSED SERIOUS DOUBTS ABOUT GAINING NATIONAL ASSEMBLY APPROVAL GIVEN CURRENT FINANCIAL CONDITION AND COMMITMENTS TO FUND 70 PERCENT OF THE LWR WE UNDERSTAND FOREIGN MINISTER PARK WILL ASK FOR THE USG TO PROVIDE FUNDING FOR THE LIGHT WATER REACTOR THIS WOULD PROVIDE A USEFUL OPPORTUNITY TO REITERATE OUR PROPOSAL FOR HELPING TO RESOLVE BOTH OF OUTSTANDING FUNDING CONFIDENTIAL UNCLASSIFIED US Department of State Case-No Doc No 305648226 Date 11 25 2014 UNCLASSIFIED US Department of State Case No F-2014-12152 Doc No 005648226 Date 11 25 2014 CONFIDENTIAL PTQ0838 PAGE 01 SEOUL 02357 03 OF 03 2308302 ACTION EAP-01 INFO LOG-00 ACDE-OO AID-00 CA-02 CIAE-OO C-OO SRPP-OO DS-OO IMMC-01 IO-OO ADS-00 M-OO COS-03 OIC-02 OMB-01 PA-OO PRS-OO CID-00 SGT-00 T-OO SGHD-OO DRL-04 G-OO SAS-OO 364DFD 2308312138 0 230827Z APR 98 FM AMEMBASSY SEOUL TO SECSTATE WASHDC IMMEDIATE 0087 I I A SECTION 03 OF 03 SEOUL 002357 E O 12958 DECL AFTER KOREAN TAGS PREL KS KN SUBJECT SCENESETTER FOR SECRETARY VISIT TO SEOUL CONCERNS BEYOND UNIFICATION NATO FOR NORTHEAST 13 C SO MANY URGENT ISSUES DOMINATE OUR BILATERAL AGENDA THAT THE VITAL QUESTION OF WHERE THE RELATIONSHIP MIGHT GO AFTER THE NORTH-SOUTH CONFRONTATION IS RESOLVED OFTEN GETS SHORT SHRIFT PRESIDENT KIM IS ONE OF THE FEW CONFIDENTIAL CONFIDENTIAL UNCLASSIFIED US Department of State Case No Doc No 005648226 Date 11 25 2014 UNCLASSIFIED US Department of State Case No Doc No 005648226 Date 11 25 2014 PAGE 02 SEOUL 02357 03 OF 03 2308302 KOREAN POLITICIANS TOHAVE GIVEN THIS SERIOUS THOUGHT AND HE HAS BEGUN TO SPEAK OUT ON THE NEED FOR A CONTINUED SECURITY PRESENCE IN NORTHEAST ASIA EVEN AFTER REUNIFICATION AND BEYOND THAT FOR A BROADER REGIONAL SECURITY STRUCTURE THAT WOULD EVENTUALLY INCLUDE ALL THE MAJOR REGIONAL POWERS MUCH OF THIS IS SIMPLY PRAGMATIC KOREA WILL PROBABLY NEVER BE ABLE TO AFFORD TO MATCH THE MILITARY POWER OF ITS GIANT NEIGHBORS BUT WHATEVER THE IMPETUS BEHIND IT STRATEGIC VISION FITS WELL WITH OUR OWN YOU MIGHT BEGIN TO EXPLORE THIS WITH HIM AND IT SHOULD BE A KEY PART OF HIS DIALOGUE WITH PRESIDENT CLINTON IN JUNE - 14 C YOU WILL COME HERE DIRECTLY FROM BEIJING A FEW DAYS AFTER THE VISIT TO SEOUL BY PRC VICE PRESIDENT HU JINTAO THIS COINCIDENCE OFFERS AN EXCELLENT OPPORTUNITY FOR YOU TO COMPARE NOTES ON APPROACH TO KOREAN ISSUES THE ROLE EACH OF US ENVISAGES IT PLAYING ON THE PENINSULAR AFFAIRS AND HOW BOTH OF US CAN ENCOURAGE MATURATION INTO A RESPONSIBLE MAJOR PLAYER IN REGIONAL AND GLOBAL AFFAIRS OF COURSE A CLOSE KOREAN RELATIONSHIP IS ALSO IMPORTANT TO REGIONAL SECURITY THE NEW ADMINISTRATION HAS PLEDGED TO REMOVE BARRIERS TO THE IMPORT OF JAPANESE GOODS AND CULTURE TO NEGOTIATE A NEW FISHERIES AGREEMENT AND TO SEEK A FINAL RESOLUTION OF ERA WRONGS SUCH AS THE MISTREATMENT OF WOMEN WE SHOULD WELCOME PRESIDENT EFFORTS TO MOVE PAST THESE STANDING DISAGREEMENTS GLOBAL ISSUES CONFIDENTIAL CONFIDENTIAL PAGE 03 SEOUL 02357 03 OF 03 2308302 15 C GIVEN KIM DEEP COMMITMENT TO HUMAN RIGHTS WE MAY FIND THE NEW GOVERNMENT MORE WILLING TO WORK WITH US ON SUCH ISSUES AS BURMA CAMBODIA IRAN AFGHANISTAN AND CUBA ON WHICH IT TRADITIONALLY HAS KEPT A LOW PROFILE IN ORDER TO BOOST TRADE AND WOO THE THIRD WORLD SUPPORTERS YOU MIGHT NOTE THAT THE SIGNIFICANT TRADE TIES WITH COUNTRIES LIKE LIBYA AND IRAN GIVE IT LEVERAGE THAT SHOULD BE USED TO PRESS THOSE COUNTRIES TO ABANDON THEIR SUPPORT FOR TERRORISM AND OPPOSITION TO THE MIDDLE EAST PEACE PROCESS UNCLASSIFIED US Department of State Case No Doc No 005648226 Date 11 25 2014 UNCLASSIFIED US Department of State Case No Doc NO 005648226 Date 11 25 2014 16 C ON OTHER GLOBAL ISSUES SHARE SIMILAR VIEWS ON THE NEED FOR LANDMINES ON THE KOREAN PENINSULA AS LONG AS NORTH KOREA POSES A THREAT OF INVASION BUT WE ARE AT ODDS OVER UN SYSTEM REFORM THE ROKG ARGUES THAT MID- SIZED COUNTRIES NEED A STRONGER VOICE IN UN AFFAIRS AND HENCE THAT THE SFCURITY COUNCIL SHOULD BE EXPANDED TO 25 OR 26 SE I PRESIDENT KIM FOREIGN B1 MINISTER PARK AND NATIONAL SECURITY ADVISOR LIM HAVE NOT MID YET VOICED STRONG VIEWS ON THESE ISSUES AND YOUR UN EXPERIENCE MAY PROVIDE A GOOD OPENING TO ENCOURAGE THEM NOT TO IMPEDE OUR REFORM EFFORTS WITH THE BUENOS AIRES CONFERENCE ON CLIMATE CHANGE SET FOR THIS SUMMER IT WILL ALSO BE USEFUL TO ENCOURAGE THE ROKG AS AN OECD MEMBER TO MAKE FIRM COMMITMENTS TO REDUCING GREENHOUSE GAS EMISSIONS CONFIDENTIAL CONFIDENTIAL PAGE 04 SEOUL 02357 03 OF 03 230830Z BOSWORTH UNCLASSIFIED US Department of State Case No Doc No 005648226 Date 11 25 2014 UNCLASSIFIED US Department of State Case No Doc No 005648226 Date 11 25 2014 CONHDENWAL UNCLASSIFIED US Department of State Case No Doc No 005648226 Date 11 25 2014                     National Security Archive    Suite 701  Gelman Library 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