Cablegate: Seoul - Press Bulletin; October 1, 2009

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TAGS: PREL PGOV MARR ECON KPAO KS US
SUBJECT: SEOUL - PRESS BULLETIN; October 1, 2009

TOP HEADLINES
-------------

Chosun Ilbo, All TVs
Powerful Indonesia Quake Kills 120, Thousands Trapped;
Death Toll Expected to Climb Sharply

JoongAng Ilbo
Citizens Enraged by "Light Sentence" Given
to Heinous Child Rapist

Dong-a Ilbo, Seoul Shinmun
President Lee Urges Political Circles to Hurry
to Redraw Electoral and Administrative Districts

Hankook Ilbo, Segye Ilbo
President Lee: "It is Time for Korea to Take Lead in Global Issues,
Including N. Korea's Nuclear Issue"

Hankyoreh Shinmun
Contradictory Remarks by Ruling Camp Officials Add to Confusion over
Controversial Sejong City Project

DOMESTIC DEVELOPMENTS
-------------------------------------------

President Lee Myung-bak, in a Sept. 30 special news conference at
the Blue House, said that the ROK should present its own visions and
perspectives regarding not only inter-Korean issues but also other
international issues, taking a leading role. (All)

Deputy Secretary of State James Steinberg told reporters yesterday
after a meeting with First Vice Foreign Minister Kwon Jong-rak at
the Foreign Ministry in Seoul that there is no difference of opinion
between the ROK and the U.S. over the ROK-proposed "grand bargain"
on North Korea's nuclear issue. He also urged North Korea to seize a
"tremendous opportunity" and return to the Six-Party Talks. (Chosun,
JoongAng, Dong-a, Hankook, Segye, Seoul, all TVs)

The Deputy Secretary also said during an interview with JoongAng
Ilbo that the sanctions against North Korea will remain in place
until the North takes concrete, irreversible steps to eliminate
nuclear weapons. (JoongAng)

INTERNATIONAL NEWS
-------------------------------------

In what could be viewed as North Korea's first official response to
President Lee's "grand bargain" proposal, North Korea's Korean
Central News Agency said yesterday that the nuclear matter is a
bilateral issue with the U.S. and that the "grand bargain" proposal
is an attempt to meddle between the North and the U.S. (JoongAng,
Hankook, Hankyoreh, Segye)

Stephen Bosworth, the U.S. Special Representative for North Korea
Policy, in a Sept. 28 interview hosted by the East Asia Forum, said:
"There is no military solution in North Korea's nuclear issue,"
adding: "I will say that we are willing to restart the negotiation
process." (JoongAng)

MEDIA ANALYSIS
---------------

-N. Korea
---------
Most ROK media covered yesterday's press remarks by visiting Deputy
Secretary of State James Steinberg, in which he said: "We've
indicated that we're prepared to have direct engagement - bilateral

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engagement - with North Korea if it's in aid of bringing North Korea
back into the Six Party Talks and recommitting to denuclearization.
... We hope that the North Koreans take advantage of that."

Deputy Secretary Steinberg was further quoted as saying during an
interview yesterday with right-of-center JoongAng Ilbo: "The
sanctions against North Korea will remain in place until the North
takes concrete, irreversible steps to eliminate nuclear weapons."

Most media also noted Deputy Secretary Steinberg's remarks, "There
is absolutely no difference in our perspective (between Washington's
'comprehensive approach' and the 'grand bargain' proposed by
President Lee). What we need is a comprehensive and definitive
resolution of the nuclear question. I think that's what President
Lee Myung -bak was talking about, that's what we're talking about,
so I think we are absolutely in sync on this." Most newspapers
carried the identical sub-headlines: "Steinberg: 'There is No
Bilateral Difference on Grand Bargain.'"

Most ROK media reported on North Korea's rejection yesterday of
President Lee's "grand bargain" proposal on its nuclear issue,
citing the North's Korean Central News Agency as insisting that the
nuclear matter is a bilateral issue with the U.S. and that the
"grand bargain" proposal is an attempt to meddle between the North
and the U.S.

Right-of-center JoongAng Ilbo quoted Stephen Bosworth, the U.S.
Special Representative for North Korea Policy, as saying in a Sept.
28 interview hosted by the East Asia Forum: "There is no military
solution in North Korea's nuclear issue. Negotiations are the way
forward. I will say that we are willing to restart the negotiation
process."

With regard to China's recent indication of its intention to provide
substantial aid to North Korea, conservative Chosun Ilbo
editorialized: "If North Korea receives massive aid from China and
rides out its economic emergency, the North would probably continue
to develop nuclear weapons while outwardly engaging in talks (on its
denuclearization.) ... If China does not want this to happen, it
should provide aid to North Korea within the framework of
international cooperation to deter the North's nuclear
development."

FEATURES
----------

STEINBERG: "WE ARE ABSOLUTELY IN SYNC ON THIS (GRAND BARGAIN)"
(Chosun Ilbo, October 1, 2009, page 4)

By Reporter Lim Min-hyuk

Deputy Secretary of State James Steinberg said on September 30,
"We've lived through the history before of partial measures and
reversible measures and what we need is a comprehensive and
definitive resolution. I think we are absolutely in sync on this
(grand bargain.)"

During a press interview with reporters following his meeting with
ROK Vice Foreign Minister Kwon Jong-rak, Steinberg said, "We've
discussed with our partners here in Japan, Moscow, and Beijing our
common willingness to engage with North Korea. We're prepared to
have direct engagement-bilateral engagement-with North Korea if it's
in aid of bringing North Korea back into the Six-Party Talks."

The deputy secretary said, "We hope that the North Koreans take
advantage of that (opportunity for bilateral talks.)" He added, "I
think it's important for North Korea to make clear that it's
prepared to engage on those terms and that, if we find that it's
productive to pursue that direction, I think we're prepared to do
it." Steinberg also noted, "We are deeply committed together, along
with the other members of the Six-Party Talks, to convincing North
Korea that they should return to the path of diplomacy through the
Six-Party Talks and recommit to complete and irreversible

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denuclearization."

Earlier, Deputy Secretary Steinberg had a breakfast meeting with Kim
Sung-hwan, Senior Presidential Secretary for Diplomacy and National
Security and Wi Sung-lac, the ROK's Chief Delegate to the Six-Party
Talks and discussed President Lee Myung-bak's "Grand Bargain"
proposal and the timing and conditions for U.S.-North Korea
bilateral talks.

STEINBERG: "WE HOPE THAT THE NORTH KOREANS TAKE ADVANTAGE OF THAT
(OPPORTUNITY FOR BILATERAL TALKS)"
(Dong-a Ilbo, October 1, 2009, page 2: Excerpts)

By Reporters Kim Young-shik and Shin Seok-ho

After a meeting with ROK Vice Foreign Minister Kwon Jong-rak at the
Foreign Ministry, Deputy Secretary of State James Steinberg said on
September 30, "The challenge now is for the North Koreans to
understand that there is an opportunity to return to a more
productive path."

Meanwhile, North Korea issued its first official reaction to
President Lee Myung-bak's "Grand Bargain" proposal on September 30.

The North's Korean Central News Agency said that it is absurd (for
the U.S.) to call on the North to give up its nuclear program when
it remains hostile to Pyongyang.

U.S. ENVOY: "SANCTIONS WILL REMAIN IN PLACE UNTIL NORTH KOREANS
ELIMINATE NUCLEAR WEAPONS"
(JoongAng Ilbo, October 1, 2009, Front page)

By Senior Journalist Kim Young-hie

Deputy Secretary of State James Steinberg announced on September 30
that the U.S. will continue to implement UNSC Resolution 1874
sanctioning North Korea until the North takes concrete and
irreversible steps to denuclearize (the Korean Peninsula.)
Steinberg, a chief official in charge of the Obama Administration's
North Korea policy, said that the U.S. will not even discuss easing
sanctions before Pyongyang takes necessary steps.

During an exclusive interview with JoongAng Ilbo, the deputy
secretary, who is on a tour of three Asian countries including the
ROK, China and Japan, said that diplomatic moves by the U.S. toward
talks with North Korea definitely do not represent any shift in its
position. He said that the U.S. is strictly enforcing UNSCR 1874
and will not back off. Deputy Secretary Steinberg noted that the
U.S. believes that North Korea has recently made conciliatory
gestures toward the ROK and the U.S. because sanctions are paying
off and North Korea realizes that its current direction is isolating
itself and undermining its security.

Deputy Secretary Steinberg said that there is no conceptual
difference between the "grand bargain," which President Lee
Myung-bak proposed in New York on September 16 as a new solution to
the North Korean nuclear issue, and the Obama Administration's
"package deal."

U.S. ENVOY: "THERE WILL BE NO COMPROMISE THAT TOLERATES NORTH
KOREA'S NUCLEAR POSSESSION"
(JoongAng Ilbo, October 1, 2009, Page 10)

By Senior Journalist Kim Young-hie

An interview with U.S. Deputy Secretary of State James Steinberg

Despite a very tight schedule for his seven-day trip to five Asian
nations, U.S. Deputy Secretary of State James Steinberg did not look
tired. During a September 30 interview held at the conference room

SEOUL 00001572 004 OF 005

of the U.S. Embassy in Seoul, he sounded firm regarding North Korea.
Seemingly mindful of U.S. hard-liners' criticism that (the U.S.) is
strung along by the North, he strongly emphasized that (the U.S.)
has no intention of easing sanctions.

Q. There must have been efforts to coordinate between President Lee
Myung-bak's "grand bargain" proposal and the Obama Administration's
"package deal." How much progress has been made?

"They are all the same concept. We should take a different approach
(on the nuclear issue) than in the past, whatever words you use to
describe that. There is no difference about that among not only the
ROK and the U.S. but also other Six-Party nations. We do not want a
kind of forward and backward movement."

Q. Then, when President Lee put forward the grand bargain, why did
the U.S. Department of State react coolly?

"That was not an accurate response."

Q. Did the idea of the grand bargain come out of the ROK-U.S. summit
last June?

"Yes. As President Lee said, both nations agreed that a "piecemeal"
approach to resolving the North Korean issue step by step should not
be the case. The way of offering rewards to the North for
incremental progress does not work properly."

Q. North Korean leader Kim Jong-il expressed intent to return to
multilateral and U.S.-North Korea talks.

"So far, there have been various contacts between Chinese and North
Korean officials by visiting each other. We will watch whether
North Korea sincerely intends to return to dialogue."

Q. Do you think a breakthrough in the North Korean nuclear issue
will be made at the upcoming ROK-China-Japan summit in Beijing?

"It is up to whether North Korea is ready to make a strategic
decision. We are ready. The door is widely open for the North
Koreans to walk in. They can rejoin the Six-Party Talks. In that
case, we can discuss more specific details to reach the destination.
Kim's strategic decision is required."

Q. What is the strategic decision?

"It is to recognize that North Korea is better off without nuclear
weapons than with nuclear weapons. This is the key of the strategic
decision. Then, a lot of things become possible."

Q. Do you think it will be helpful to North Korea's denuclearization
to extend the currently effective sanctions against the North by
another three or six months?

"We have made it clear that unless the North Koreans take steps
toward denuclearization, we will not discuss withdrawing sanctions.
Right now, what we want to talk to them about is not about
sanctions. We agreed with other Six-Party countries to maintain UN
Security Council Resolution 1874. There is no proposal to ease or
end the current sanctions against the North."

Q. The "two-track" approach combining both sanctions and dialogue is
being pursued in a balanced way. In what situation, will dialogue
be given more weight?

"We are not going to, as in the past in some cases, give sanctions
relief for talks. We need to take note of North Korea's recent
moves. They launched missiles, conducted a nuclear test, and, on
September 3, sent the UN Security Council a letter saying that they
successfully conducted experimental uranium enrichment. Therefore,
in order for the international community to lift the sanctions
against the North, North Korea has much work to do."

Q. Then, why did you recently veer away from additional sanctions

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toward the pursuit of dialogue?

"We did not change course. We are firmly enforcing UNSC Resolution
1874, and we possess every means needed to do so. Several nations
have already stopped North Korean vessels. Yesterday in Beijing,
too, we discussed the implementation of UNSCR 1874. We also talked
about this with the Malaysian Prime Minister."

Q. As a way to resolve the North Korean nuclear issue, do you
consider tolerating North Korea's nuclear possession on the
condition that it will not spread its nuclear programs?

"That is one of the few questions to which I can give a simple
answer. The answer is 'No.' Such concern is groundless. We want
North Korea's irreversible and complete denuclearization."

Q. Does the Iranian nuclear standoff have any impact on the North
Korean nuclear issue?

"It has much influence. If we do not stand firm against the North,
we could send the world a signal that we tacitly approve nuclear
proliferation. Although the North Korean issue itself is important,
we take much interest in the meaning that (the North Korean issue)
carries in relation to the nuclear non-proliferation regime."

Q. Do you have a contingency plan for a "Big Bang" inside North
Korea?

"Policymakers should consider various options. However, it is not
appropriate to disclose the details."

STEPHENS

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