Give an extortionist what he wants and he'll come back for more.  Where's the surprise here?
 
Hilary
 
 
Tuesday, January 11, 2000
 
KOREA

Pyongyang 'up to old tricks' in reactor deal

ROGER DEAN DU MARS in Seoul
A month after the North Korean light water nuclear reactor deal was finally sealed, Pyongyang has again resorted to brinkmanship to extort more money - with an eye to for upcoming talks with Washington - say observers.

Pyongyang is demanding pay be increased from US$110 (HK$854) to US$600 a month for 200 labourers at the Keumho construction site.

The nuclear facility is being built by the Korean Energy Development Organisation (Kedo).

Pyongyang said the wages were unfairly low, citing workers' pay in South Korea of about US$2,000 for the same tasks.

Analysts said the wages were high by North Korean standards and workers would probably never see the pay rise, which Pyongyang would pocket.

Last month Seoul, Washington, Pyongyang and Tokyo - the members of the consortium primarily responsible for funding construction of the reactors - signed an agreement designed to cap North Korea's ambitions of developing a nuclear arsenal.

Created a year after the 1994 Agreed Framework in Geneva, the Kedo project had been routinely delayed. The December signing was considered a major marker in taming the bellicose and outspoken Stalinist regime.

Although North Korea had been threatening to withdraw the workforce and disrupt the Kedo project, analysts said Pyongyang was up to its old tricks again.

"Pyongyang is doing what it typically does, pushing the envelope by making unreasonable demands to test the resolve of Kedo members to extort more money," Professor Lee Chung-min, of the graduate school of international studies at Yonsei University, said.

When North Korea argued for the wage rise last October, Kedo executive director Dusaix Anderson sent a letter to Pyongyang explaining that a written agreement in 1997 explicitly established the fixed wages.

Analysts say North Korea is not expecting immediate capitulation to its demand.

"That kind of demand is not accepted, especially with all the countries involved," North Korea expert Lee Jong-heon said.

"The Kim Jong-il regime is placing a barricade in front of the project to prepare for future Kedo negotiations and for the upcoming Pyongyang/Washington talks."

Vice-Foreign Minister Kim Kye-gwan and US special envoy Charles Kartman are due to meet in Berlin on January 22 to discuss bilateral issues.

"This demand is a wake-up call for members," Professor Lee said. "Kedo is a cash cow for North Korea and it's not going to walk out of it. The countries involved should see this as a litmus test."

<http://www.scmp.com/News/Asia/Article/FullText_asp_ArticleID-20000111025455826.asp>

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