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Intelligence Report
Directorate of Intelligence
36
Intelligence Monitoring of North Koreans Implementation of the US-DPRK Agreed1
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DATE: MAY4
Implementation of Light-Water Reactor (LWR) Agreement
US, South Korean, and Japanese executive officers of the Korean Peninsula Energy Development Organization (KEDO) visited Pyongyang and the LWR project site at Sinp'oarch. Although North Korean officials voiced some complaints about the pace of progress, they also said they were increasingly convinced of KEDO's sincerity about implementing the LWR project During the visit the North announced that its Nuclear Energy Department would act as KEDO's counterpart. North Korean officials also said they expected site preparation to begin later this spring and had moved hundreds of families from the site,iber optics cable from Hamhung to Sinp'o, and begun to upgrade the local harbor, airport, and roads serving the site. According to press. South Korean Deputy Executive Director Ch'oe Yong-ehin said KEDO would provide up0oodwill contribution to help cover re settle mem expenses.
According to Ch oe. North Korean officials privately conceded that the project could not be completed without cooperation between North and South Korea, but said "foe now" they needed to maintain the principleead role for the US in order to save face.
Both sides also agreed to begin talks in New York in April on several LWR side protocols and to alternate any subsequent protocol negotiations between the Myohyangsan guest facilities outside P'yongyang and New York.
Negotiations on Privileges and Immunities. The first round of protocol talks on juridical issues, privileges and immunities, and consular protection took place8 April. Although the talks reached no final agreement, the sides identified key differences.
North Korea proposed granting privileges and immunities only to KEDO officials and for official acts only in the LWR project site and related areas. KEDO requested full diplomatic immunity for its official* anywhere in North Korea
The North's representatives initially offered consulargeneral privileges andcontractors, subcontractors, and other persons under KEDO auspices while theyore at the project site and in related areas. According to press, however, at the end of the session theyillingness to grant privileges and immunities at the project site to technical personnel sect by the mam contractor.
The North Koreans also characterized KEDObusiness
nd would not recognize ita status as an international organization. The North demanded lhat ihe United States serve as principal point of contact for all consular activities.
The North Korean delegation indicated that if KEDO was unable to make progress in responding to Pyongyang's position, the Nonh would seek to continue the discussions directly with the United Stales.
Negotiations on communications and transportation protocols. The first round of talks began onpril and was continuing at the end of the reporting period. The North is refusing to allow KEDO independent means of comrnun>caiions or cofnmunicauons by satellite; it also is demanding lhat all commuricaixxis beee few-service basis through an international communications station that the North wiii build at ihe project site. Pyongyang made no allowance for entcruinment materials brought in by project workers, and all personal and work-related materials would be subject to inspection, confiscation, and judicial action.
The North's initial proposal on transportation arrangements included provisions for notifications, approvals, and requirements for longer routes to the site, lhat would significantly delay the project. The North wants all surface shipping to stayesignated corridor thirty eight miles off the coastesignated pilot point before proceeding to port The North Koreans also insisted thai air routes run only between Sarsdok airport near the site and one of three airports in Japan. The North conunucd to reject South Korean demands for direct truck or rail routes between South Korea and the site J
pnleavily armed North Korean troops entered the Joint Security Area ai Panmunjom, set up finng positions, and conducted deployment drills before withdrawing several hours
later.
the actions were parttrategy [
| to bring about bilateral talks wii
thr United Statesew peace mechanism.
Verbal exchanges between North and South grew more belligerent following the incursions as Pyongyang continued to accuse Seoul of provocative military activities neat thend Seoul sought unsuccessfully to get the UN Security Council toormal statement condemning the DMZ incident Low-level military tensions continued through the end of die reporting period:
Onpril two North Korean patrol boats briefly maneuvered south of the Military Demarcation Line off the west coast until South Korean naval vessels chased them off.
Onpril the North, in turn, accused South Korean forces of provoking tensions by taking up firing positions near the Military Demarcation Line with machine gunsmm recoilless guns.
The joint proposal by the US and South Korean Presidents onpril for four-party peacethe two Koreas, the United States, anda cautious and noncommittal initial response from the North. Pyongyang said it needed time to review the proposal, but at the same time used the media and overseas diplomats to reiterate that Seoul might be permitted observer status at US-North Korean negotiationseace agreement.
Official South Korean statementshe proposal underscored the primacy of tbe North-South component within tbe four party formula, and stopped short of signaling greater flexibility on conditions for resuming North-South dialogue on other
issues.
Kim Yong-sam characterized the proposal as "tbe last choice" the North would have on the Armistice issue, and his foreign minister said Seoul wouldreliminary contact if the Northositive reaction.
According to press, other government officials stated that the four-party talks would be dealt with apart from Seoul's existing policy toward the North. They ruled out "taking appeasementas unilaterally easing economic sanctions and increasingdraw the North into four-party talks. I
Implementation of the North-South Denuclearization Declaration (NSDD)
No new developments to report.
Original document.
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