Korean Central News Agency:


DPRK FM spokesman on its principled stand toward DPRK-U.S. relations
     Pyongyang, March 3 (KCNA) -- A spokesman for the DPRK Foreign Ministry
gave an answer to a question put by KCNA today as regards the U.S. side's
reaction to the recent statement issued by him. He said:
    As already reported, on Feb. 21 we issued a statement of the spokesman
for the Foreign Ministry clarifying our principled stand toward a torrent of
hardline remarks made By the new U.S. administration against the DPRK.
    The tenor of the statement is that if the U.S. propose dialogue we will
respond to it with dialogue and if the U.S. comes out in confrontation we
will counter it with confrontation.
    However, the United States is spreading the rumour that the DPRK is
"threatening" it in a bid to shift the responsibility for the possible
worsening DPRK-U.S. relations onto the DPRK.
    We have neither intention nor capacity to browbeat anyone.
    It is none other than the DPRK which is exposed to threat owing to the
conservative hardline stand expressed by the U.S. administration.
    The same is true of the issue of offering light water reactors to the
DPRK. 
    The prospect for the provision of LWRS under the DPRK-U.S. agreed
framework is becoming more gloomy and this gravely threatens the DPRK's
right to existence as it is suffering acute shortage of electricity.
    Under this situation it is self-evident that it is difficult for the
DPRK to unilaterally and indefinitely keep in force such measures as
moratorium on the launch of satellites and missiles taken by it with good
faith for DPRK-U.S. dialogue, to say nothing of the DPRK-U.S. agreed
framework. 
    Of course, we take note of the statement of the authorities of the U.S.
administration that they would implement the agreed framework.
    What we need now is not empty words but practical actions.
    A year ago, we advanced a concrete proposal for the solution to the
issue of the loss of electricity caused by the delayed lwr offer and the
U.S. side said that it would set forth an alternative proposal.
    The U.S. side should put forward as soon as possible a solution to the
issue of loss of electricity for which it is responsible.
    The U.S. is keen to impose unilateral sacrifice and loss upon the DPRK
while shunning the fulfilment of its commitment and evade its responsibility
by bringing the charge of "threat" against it. The U.S. should know that
this wrong great-power chauvinist conception and trite trick will never go
down with the DPRK.
    The DPRK which has sincerely implemented the agreed framework has a
legitimate right to call the U.S. side to account for its insincere attitude
towards its implementation and an unshakable will to exercise it.

****

KOMINFORM:

Below please find a part of the original DPRK-US agreement text concerning
the LWR-project. 


Agreement on Supply of A Light-Water Reactor project to The DPRK between the
Government of the DPRK and the KEDO
------------------------------------------------------------------------

The Government of the Democratic People's Republic of Korea (the Democratic
People's Republic of Korea is hereinafter referred to as the "DPRK") and the
Korean Peninsula Energy Development Organization (hereinafter referred to as
"KEDO");

Recognizing that KEDO is an international organization to finance and supply
a light-water reactor project (hereinafter referred to as the "LWR project")
to the DPRK as specified in the Agreed Framework between the United States
of America and the Democratic People's Republic of Korea of October 21, 1994
(hereinafter referred to as the "DPRK-U.S. Agreed Framework"),

Recognizing that the DPRK-U.S. Agreed Framework and the June 13, 1995,
DPRK-U.S. Joint Press Statement specify that the U.S. will serve as the
principal point of contact with the DPRK for the LWR project, and

Reaffirming that the DPRK shall perform its obligations under the relevant
provisions of the DPRK-U.S. Agreed Framework and shall accept the LWR
project as specified in the June 13, 1995, DPRK-U.S. Joint Press Statement,

Have agreed as follows:



ARTICLE I 

SCOPE OF SUPPLY

1. KEDO shall provide the LWR project, consisting of two pressurized
light-water reactor (LWR) units with two coolant loops and a generating
capacity of approximately 1,000 MW(e) each, to the DPRK on a turnkey basis.
The reactor model, selected by KEDO, will be the advanced version of
U.S.-origin design and technology currently under production.

2. KEDO shall be responsible for the scope of supply for the LWR project,
specified in Annex 1 to the Agreement. The DPRK shall be responsible for
other tasks and items necessary for the LWR project, specified in Annex 2 to
the Agreement.

3. The LWR project shall conform to a set of codes and standards equivalent
to those of the IAEA and the U.S. and applied to the reactor model referred
to in paragraph 1 of this Article. The set of codes and standards shall
apply to the design, manufacture, construction, testing, commissioning, and
operation and maintenance of the LWR plants, including safety, physical
protection, environmental protection, and storage and disposal of
radioactive waste.



ARTICLE II 
TERMS OF REPAYMENT

1. KEDO shall finance the cost of the tasks and items specified in Annex 1
to the Agreement to be repaid by the DPRK on a long-term, interest-free
basis.

2. The amount to be repaid by the DPRK will be jointly determined by KEDO
and the DPRK based on examination by each side of the technical description
of the LWR project specified in the commercial supply contract for the LWR
project, the fair and reasonable market value of the LWR project, and the
contract price payable by KEDO to its contractors and subcontractors under
the commercial supply contracts for the tasks and items specified in Annex 1
to the Agreement. With respect to the tasks and items specified in Annex 1
to the Agreement, the DPRK shall not be responsible for any additional
costs, other than those that result from actions by the DPRK or from its
failure to take actions for which it is responsible, in which case the
repayment amount shall be increased by an amount jointly determined by KEDO
and the DPRK, based on actual added cost to the LWR project payable by KEDO.

3. The DPRK shall repay KEDO for each LWR plant in equal, semiannual
installments, free of interest, over a 20-year term after completion of each
LWR plant, including a three-year grace period beginning upon completion of
that LWR plant. The DPRK may pay KEDO in cash, cash equivalents, or through
the transfer of goods. In the event that the DPRK pays in cash equivalents
or goods (such payment is hereinafter referred to as "in-kind payment"), the
value of such in-kind payment shall be determined jointly by KEDO and the
DPRK, based on an agreed formula for determining fair and reasonable market
price.

4. Details concerning the amount and terms of repayment shall be specified
in a separate protocol between KEDO and the DPRK pursuant to the Agreement.



ARTICLE III 
DELIVERY SCHEDULE

1. KEDO shall develop a delivery schedule for the LWR project aimed at
achieving a completion date of 2003. The schedule of relevant steps to be
performed by the DPRK under the DPRK-U.S. Agreed Framework, as specified in
Annex 3 to the Agreement, shall be integrated with the delivery schedule for
the LWR project with the aim of achieving the performance of such steps by
2003 and the smooth implementation of the LWR project. As specified in the
DPRK-U.S. Agreed Framework, the provision of the LWR project and the
performance of the steps specified in Annex 3 to the Agreement are mutually
conditional.

2. For purposes of the Agreement, "completion" of an LWR plant means
completion of performance tests that is satisfactory in accordance with the
set of codes and standards specified in Article I(3). Upon completion of
each plant, the DPRK shall issue to KEDO a take-over certificate for each
respective plant. 

3. Details concerning the schedule for the delivery of the LWR project and
the performance of the steps specified in Annex 3 to the Agreement,
including mutually agreed procedures for any necessary changes and
completion of a significant portion of the LWR project as specified in Annex
4 to the Agreement, shall be specified in a separate protocol between KEDO
and the DPRK pursuant to the Agreement.



ARTICLE IV 



IMPLEMENTING ARRANGEMENTS

1. The DPRK may designate a DPRK firm as its agent and authorize the firm to
enter into implementing arrangements as necessary to facilitate the LWR
project.

2. KEDO shall select a prime contractor to carry out the LWR project and
shall conclude a commercial supply contract with this prime contractor. A
U.S. firm will serve as program coordinator to assist KEDO in supervising
overall implementation of the LWR project, and KEDO will select the program
coordinator.

3. KEDO and the DPRK shall facilitate practical arrangements that both sides
deem necessary, including efficient contacts and cooperation among the
participants in the LWR project, to ensure the expeditious and smooth
implementation of the LWR project.

4. Written communications required for the implementation of the Agreement
may be executed in English or Korean language. Existing documents and data
may be used or transmitted in their original languages.

5. KEDO, its contractors and subcontractors shall be permitted to operate
offices at the project site and other directly related locations such as the
nearby port or airport as shall be agreed between KEDO and the DPRK, as the
progress of the LWR project may require.

6. The DPRK shall recognize KEDO's independent juridical status and shall
accord KEDO and its staff such privileges and immunities in the territory of
the DPRK as necessary to carry out the functions entrusted to KEDO. KEDO's
juridical status and privileges and immunities shall be specified in a
separate protocol between KEDO and the DPRK pursuant to the Agreement.

7. The DPRK shall take steps to protect the safety of all personnel sent to
the DPRK by KEDO, its contractors and subcontractors, and their respective
property. Appropriate consular protection in conformity with established
international practice shall be allowed for all such personnel. Necessary
consular arrangements shall be specified in a separate protocol between KEDO
and the DPRK pursuant to the Agreement.

8. KEDO shall take steps to ensure that all personnel sent to the DPRK by
KEDO, its contractors and subcontractors shall undertake to respect the
relevant laws of the DPRK, as shall be agreed between KEDO and the DPRK, and
to conduct themselves at all times in a decent and professional manner.

9. The DPRK shall not interfere with the repatriation, in accordance with
customs clearance procedures, by KEDO, its contractors and subcontractors of
construction equipment and remaining materials from the LWR project.

10. The DPRK shall seek recovery solely from the property and assets of KEDO
for the satisfaction of any claims arising under the Agreement or from any
of the acts and omissions, liabilities, or obligations of KEDO, its
contractors and subcontractors in direct connection with the Agreement,
protocols and contracts pursuant to the Agreement.



ARTICLE V 
SITE SELECTION AND STUDY

1. KEDO shall conduct a study of the preferred Kumho area near Sinpo City,
South Hamgyong Province to ensure that the site satisfies appropriate site
selection criteria as shall be agreed between KEDO and the DPRK and to
identify the requirements for construction and operation of the LWR plants,
including infrastructure improvements.

2. To facilitate this study, the DPRK shall cooperate and provide KEDO with
access to the relevant available information, including the results of the
studies that were performed previously at this site. In the event that such
data is not sufficient, KEDO shall make arrangements to obtain additional
information or to conduct the necessary site studies.

3. Details concerning site access and the use of the site shall be specified
in a separate protocol between KEDO and the DPRK pursuant to the Agreement.



ARTICLE VI 



QUALITY ASSURANCE AND WARRANTIES

1. KEDO shall be responsible for design and implementation of a quality
assurance program in accordance with the set of codes and standards
specified in Article I(3). The quality assurance program shall include
appropriate procedures for design, materials, manufacture and assembly of
equipment and components, and quality of construction.

2. KEDO shall provide the DPRK with appropriate documentation on the quality
assurance program, and the DPRK shall have the right to participate in the
implementation of the quality assurance program, which will include
appropriate inspections, tests, commissioning, and review by the DPRK of the
results thereof.

3. KEDO shall guarantee that the generating capacity of each LWR plant at
the time of completion, as defined in Article III(2), will be approximately
1,000 MW(e). KEDO shall guarantee that the major components provided by
relevant contractors and subcontractors will be new and free from defects in
design, workmanship, and material for a period of two years after
completion, but in no event longer than five years after the date of
shipment of such major components. The LWR fuel for the initial loading for
each LWR plant shall be guaranteed in accordance with standard nuclear
industry practice. KEDO shall guarantee that the civil construction work for
the LWR project will be free of defects in design, workmanship, and material
for a period of two years after completion.

4. Details concerning the provisions of this Article and the content and
procedures for issuance and receipt of warranties shall be specified in a
separate protocol between KEDO and the DPRK pursuant to the Agreement.



ARTICLE VII 
TRAINING

1. KEDO shall design and implement a comprehensive training program in
accordance with standard nuclear industry practice for the DPRK's operation
and maintenance of the LWR plants. Such training shall be held at mutually
agreeable locations as soon as practicable. The DPRK shall be responsible
for providing a sufficient number of qualified candidates for this program.

2. Details concerning the training program shall be specified in a separate
protocol between KEDO and the DPRK pursuant to the Agreement.



ARTICLE VIII 
OPERATION AND MAINTENANCE

1. KEDO shall assist the DPRK to obtain LWR fuel, other than that provided
pursuant to Annex 1 to the Agreement, through commercial contracts with a
DPRK-preferred supplier for the useful life of the LWR plants.

2. KEDO shall assist the DPRK to obtain spare and wear parts, consumables,
special tools, and technical services for the operation and maintenance of
the LWR plants, other than those provided pursuant to Annex 1 to the
Agreement, through commercial contracts with a DPRK-preferred supplier for
the useful life of the LWR plants.

3. KEDO and the DPRK shall cooperate to ensure the safe storage and
disposition of the spent fuel from the LWR plants. If requested by KEDO, the
DPRK shall relinquish any ownership rights over the LWR spent fuel and agree
to the transfer of the spent fuel out of its territory as soon as
technically possible after the fuel is discharged, through appropriate
commercial contracts.

4. Necessary arrangements for the transfer of LWR spent fuel out of the DPRK
shall be specified in a separate protocol between KEDO and the DPRK pursuant
to the Agreement.



ARTICLE IX 
SERVICES

1. The DPRK shall process for approval all applications necessary for
completion of the LWR project expeditiously and free of charge. These
approvals shall include all permits issued by the DPRK nuclear regulatory
authority, customs clearance, entry and other permits, licenses, site access
rights, and site take-over agreements. In the event that any such approval
is delayed beyond the normally required time or denied, the DPRK shall
notify KEDO promptly of the reasons therefor, and the schedule and cost for
the LWR project may be adjusted as appropriate.

2. KEDO, its contractors and subcontractors, and their respective personnel
shall be exempt from DPRK taxes, duties, charges and fees as shall be agreed
between KEDO and the DPRK, and expropriation in connection with LWR project.

3. All personnel sent to the DPRK by KEDO, its contractors and
subcontractors shall be allowed unimpeded access to the project site and to
appropriate and efficient transportation routes, including air and sea
links, to and from the project site as designated by the DPRK and agreed
between KEDO and the DPRK. Additional routes will be considered as the
progress of the LWR project may require.

4. The DPRK shall, to the extent possible, make available at a fair price
port services, transportation, labor, potable water, food, off-site lodging
and offices, communications, fuel, electrical power, materials, medical
services, currency exchanges and other financial services, and other
amenities necessary for living and working by personnel sent to the DPRK by
KEDO, its contractors and subcontractors.

5. KEDO, its contractors and subcontractors, and their respective personnel
shall be allowed unimpeded use of available means of communications in the
DPRK. In addition, KEDO, its contractors and subcontractors shall be
permitted by the DPRK to establish secure and independent means of
communications for their offices, based on a timely and case-by-case review
of equipment requests and in accordance with relevant telecommunications
regulations of the DPRK.

6. Details concerning the above-referenced services shall be specified, as
appropriate, in one or more separate protocols between KEDO and the DPRK
pursuant to the Agreement.

The text continues...

USA swindled the agreement.





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