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STRATFOR.COM Global Intelligence Update
11 April 2000


Historical Korean Meeting Underscores Trouble in Pyongyang


Summary

The leaders of the two Koreas will meet in Pyongyang June 12-14,
according to announcements by both North Korea and South Korea
April 10. The meeting will be the first ever between the leaders of
the divided peninsula. Coming just days before parliamentary
elections in South Korea, the announcement demonstrates Pyongyang's
desire to continue contact with the current government in Seoul and
suggests an ongoing battle between isolationists and their
opponents in the North Korean capital.

Analysis

South Korean President Kim Dae Jung will meet with North Korean
leader Kim Jong Il in Pyongyang June 12-14, according to an
agreement released by the governments of North Korea and South
Korea April 10. The announcement, coming less than a week before
South Korea's parliamentary elections April 13, has caused some
South Korean opposition members to question the timing as a mere
political tactic. North Korean negotiators, however, apparently
supplied the impetus behind the sudden announcement.

While Pyongyang's decision to hold top-level talks with Seoul may
seem like a fundamental shift in inter-Korean relations, the timing
and haste in which the decision was made suggest a certain
dependence between government factions in North Korea and Kim Dae
Jung's party in the South.

The announced visit of Kim Dae Jung to Pyongyang came after just
three weeks of secret negotiations between South Korean Culture and
Tourism Minister Park Jie Won and North Korean Asian-Pacific Peace
Committee Vice Chairman Song Ho Gyong in China. During the final
days of meetings, South Korea refused to concede to North Korea's
preconditions to the visit and suggested resuming dialogue after
the April 13 elections, according to Seoul government sources cited
in the Korea Herald. North Korea promptly dropped the
preconditions.

The decision by Pyongyang to drop its demands allows the meeting to
proceed months before South Korean officials had expected. North
Korea's motives in accelerating the timetable for talks include a
desire to influence South Korea's parliamentary elections. Both
Park Jie Won and Song Ho Gyong have been key players in
establishing economic links between the Koreas, particularly the
Mount Kumkang tours sponsored by Hyundai. The secret negotiations,
therefore, were carried out between Korean officials with a mutual
interest in seeing economic ties continue to flourish.

The secret meetings spawned a resumption of top-level inter-Korean
contacts - originally slated for 1994. At that time, then South
Korean President Kim Young Sam was slated to travel to North Korea
to meet with North Korean President Kim Il Sung. Several officials
in North Korea's government, including Kim Il Sung's son and heir
apparent Kim Jong Il, opposed the meeting, which was brokered by
former U.S. President Jimmy Carter, acting in a private capacity.
However, despite reservations within the government, Kim Il Sung
personally oversaw many of the preparations for the meeting.

The visit never took place, however. Kim Il Sung collapsed while
looking into preparations at his summer villa in the Myohyang
Mountains, where he planned to take Kim Young Sam. Due to the
remoteness of the villa, doctors were unable to respond swiftly.
Kim Il Sung died just 17 days before the talks were to commence.
The reported cause of death was a heart attack, triggered by "heavy
mental strains."

Inter-Korean relations were set back as Pyongyang tackled the
dynastic succession of its self-styled communist regime. Kim Jong
Il's eventual rise to power following the death of his father was a
slow process, fraught with rumors of coup attempts, internal
executions and purges, and political opposition. With the election
of Kim Dae Jung in the South and the launch of his Sunshine Policy
for national reunification, inter-Korean relations began to shift
heavily from security and political issues into the realm of
economics.

This increased focus on economics has led to a certain amount of
North Korean dependence on South Korean business interests and
projects. The dependence has also affected North Korea's foreign
policy, particularly that dealing with Seoul. However, Pyongyang
does not appear to be unified in its embrace of Kim Dae Jung and
the Sunshine Policy. The divisiveness, exposed by Kim Young Sam's
planned visit and deepened during Kim Jong Il's assumption of
leadership, has yet to fully heal.

The splits within the North Korean government can be seen in part
in its diplomatic policies. In 1998, as Kim Jong Il firmly took the
reins of power, Pyongyang began to reduce its diplomatic overseas
staff by 30 percent, until "food and economic problems" in North
Korea were solved. At the same time, there were several unconfirmed
reports in foreign media that North Korea was under a near state of
martial law following an attempted military coup.

By the end of 1998 and into early 1999, North Korea had again
reversed course, seeking to increase the number of diplomats
stationed overseas, particularly in Europe. There were reports that
North Korea was seeking entrance into the International Monetary
Fund (IMF) and the ASEAN Regional Forum (ARF), and that it was
softening its stance on U.S. forces stationed in South Korea.
However, the apparent sorting out of policy in Pyongyang was again
thrown into turmoil when South Korean navy vessels off the West
Coast of the Korean Peninsula sank a North Korean patrol boat in
June.

North Korea's government was unprepared for the intensity of South
Korea's response. The separate detentions and subsequent releases
of a South Korean tourist and a U.S. citizen revealed an
uncertainty in North Korean policy. Some factions in the government
had come to rely on the ongoing economic cooperation with South
Korea, and therefore wanted to restrain from responding strongly to
the sinking of the vessel. Others, however, supported the
maintenance of an isolated regime and advocated swift action,
giving rise to reports of an imminent second long-range missile
launch.

In fall 1999, Kim Jong Il began grooming his son Kim Yong Nam as
his successor, promoting him to a post in the Ministry of Public
Security. The move coincided with reports of the North Korean
military being sent in to suppress riots in the northern border
region with China and Russia. Kim Yong Nam's promotion was an
attempt by Kim Jong Il to reinforce North Korea's dynastic
succession, thereby also reinforcing his legitimacy to power.

Following this readjustment, North Korea again accelerated its
international diplomatic campaign, establishing ties with Italy and
engaging in talks with several countries including Australia,
Canada, Japan, the United States and the European Union. North
Korea and China also reinforced their relationship, which included
an unusual visit by Kim Jong Il to the Chinese embassy in
Pyongyang. Chinese support not only reinforces Kim's hold on power,
but also allows China to press its own agenda on the peninsula.
China also reportedly promoted the high-level inter-Korean meetings
North Korea has now accepted.

North Korea's acceptance of a meeting between Kim Jong Il and Kim
Dae Jung - a major change in the level of dialogue between the
Koreas - appears to signal Pyongyang's decision to accelerate
economic ties with South Korea. However, the timing of the
announcement suggests an air of desperation and a tinge of mutual
dependence. North Korean officials with deep links to the economic
opening to the South wish to see the Kim Dae Jung government remain
intact, or they may lose their power. Kim Dae Jung's own party is
relying on the apparent softening of North Korea's regime to retain
its mandate in the south.

Pyongyang has repeatedly fought over its diplomatic policy,
particularly whether to remain isolated - and thus insulated - from
the rest of the world. This struggle may again be coming to a head,
prompting the sudden announcement of the leader's meeting as a way
to legitimize the role of those advocating economic ties in the
face of the isolationists. While on the surface North Korea now
looks to be unanimously pursuing South Korea's Sunshine Policy, the
rushed decision to embrace direct dialogue between leaders, then,
is likely to stir even more controversy in Pyongyang.









(c) 2000, Stratfor, Inc. http://www.stratfor.com/



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