Asia News Digest
U.S., Japan, South Korea Issue Joint Statement on North
On Jan. 6 in Washington, D.C., the Trilateral Coordination and Oversight Group, consisting of the U.S., Japan, and South Korea, concluded their two-day meeting, and issued a Joint Statement on the North Korea crisis. The statement was a clear show of unity which helped paper over the significant disagreements between the parties regarding the approach to be taken to North Korea. They jointly urged North Korea to eliminate its nuclear weapons program and reiterated their intention to pursue a peaceful and diplomatic resolution of the issue. They also expressed support for the Jan. 6 statement on North Korea by the IAEA Board of Governors, which called on Pyongyang to come into compliance with its Safeguards Agreement under the Non-Proliferation Treaty. While stressing that North Korea's relations with the international community "depend on its verifiably ending its nuclear weapons program, it also expressed "continued support" for the North-South dialogue and for the Japan-North Korea dialogue.
Behind the usual rhetoric, the U.S. also said that it was "willing to talk to North Korea about how it will meet its obligations to the international community." Previously the Administration had placed the ball in the court of the North Koreans, demanding that it first undo the measures it had taken before discussion would occur. A senior Administration official who had just finished briefing reporters publicly about how there can be no "quid pro quo" admitted that the statement gives the U.S. some leeway in talking with the North Koreans which hadn't been there previously.
Immediately following the talks, it was announced that the UN Mission of North Korea in New York, had received the permission it requested to fly to New Mexico for talks with incoming Democratic Governor Bill Richardson, who had been involved in negotiations with North Korea during the Clinton Administration, when he was Energy Secretary. The Bush Administration approved the travel request.
UN Group Says U.S. Holding Back Food Shipments to North Korea
Statements by two U.S. officials on Jan. 6 indicate that charges of U.S. foot-dragging on food shipments to North Korea may have validity, despite official denials.
The UN World Food Program accused the U.S. of holding back their contributions of food shipments to North Korea, reported the New York Times on Jan. 6. Citing "senior Administration officials," they said the food shipments had been delayed because of U.S. concerns about monitoring of delivery of the food aid to target groups. These "concerns" are impeding the aid, in spite of the fact that the WFP officials have "no hard evidence" that the food aid is being diverted. "We have relatively good confidence that the food is reaching the people who need it," one WFP official said.
When asked about this, White House spokesman Ari Fleischer said that there were no political conditions being placed on food aid. "The United States does not condition food aid on political or security issues," Fleischer said. "We intend food aid to be viewed and seen and received as a humanitarian gesture of the people of the United States around the world. We intend to be responsive to the World Food Program's appeal for North Korea, as we have in past years." But, Fleischer added, "We still have concerns regarding monitoring access in North Korea ... It remains very important for North Korea to make certain that the people who need the food receive the food."
The State Department's Richard Boucher repeated that line, and also added perhaps another pretext for the delay: "Exactly how much we can give in any given year depends on the budgetary situation and we are in a position right now waiting for the appropriation so that we can make whatever commitments we will make for this year."
Boucher went on, "Looking at that situation now and seeing if there's not a way to, well, to define further, but we have to have the appropriation. But I think our intention is to continue to support these programs."
North Korea Sparks American Reaction Against 'Axis of Evil' Rhetoric
For the first time since Canadian neo-conservative fanatic David Frum successfully planting the "axis of evil" phrase in George W. Bush's State of the Union speech in January 2002, there is a concerted outcry against the catastrophic results of using this meaningless inflammatory slogan. For the neo-con chickenhawks such as the Wolfowitz-Perle gang, and their Arms Control ally, Assistant Secretary of State John Bolton, "axis of evil" equals "preemptive strikes" equals war. Policy circles are beginning to revolt at the fanaticism of the chickenhawk warmongering.
Four major commentaries appeared this week attacking the Bush White House for falling into the "axis of evil" jargon. On Jan. 5, speaking on CNN TV's Late Edition, Gen. Brent Scowcroft, the former National Security Adviser to, and close associate of, former President George H.W. Bush, not only urged that the U.S. take an engaged diplomatic track with North Korea, but directly attacked the "axis of evil" jargon. "The problem really started with the axis of evil," said Scowcroft, whereby Iraq, North Korea, and Iran "were dumped together with recipes that were supposed to handle the whole problem." "It's never been clear to me exactly why ... other than it was a very catchy phrase in the State of the Union address." He added strong praise for South Korea's diplomatic efforts: "One thing we have to remember is that we should not act in this area, about North Korea, except in the closest consultation with South Korea."
On Jan. 6, senior political columnist Robert Novak warned that President Bush allowed himself to be boxed into a rhetorical corner against North Korea. "Nearly a year ago, the President let rhetoric overpower policy when he accepted the formulation of his speechwriters and inveighed against the 'axis of evil': Iraq, Iran, and North Korea. Some conservatives who cheered those words now regret them." Unfortunately, Novak then launched into an attack on South Korean President Kim Dae Jung and President-elect Roh, for too aggressively pursuing the "Sunshine Policy" with the North.
On Jan. 7, side-by-side columns in the Washington Post by house columnist David Ignatius and former U.S. Defense Secretary William Cohen (1997-2001) also sent the message to Bush: "Back off" the "axis of evil."
The op-ed by Cohen, called "Huffing and Puffing Won't Work," says that threats by neo-cons ("those who wish to pursue a harder line") will "not blow down Kim Jong Il's house," so the U.S. has to make concessions "by another name" through China, Russia, Japan, and South Korea's diplomacy to get the North to abandon nuclear plans. Diplomacy is concessions, he says.
China's Economic Growth Brings Paradoxes, Challenges
Despite its rapid economic growth, China is facing several serious problems that must be dealt with, stated a commentary in People's Daily on Jan. 3. This is one of series of articles that have brought attention to the "paradoxes" of China's economic situation.
Unemployment in the cities due to restructuring of the state-owned enterprises, and the vast migration of "surplus" rural workers to the cities seeking work, is a serious problem. Officially, urban unemployment is below 4.5%, but many Chinese analysts consider it to be at least 7%, and, some warn, it could really be 15% or higher, due to "hidden unemployment" in cities and the huge surplus labor force in the countryside. Recently, some 100 million rural workers have moved into the cities, many taking jobs that unemployed industrial workers might have taken.
In addition, China continues to be plagued by deflation that began in the so-called "soft landing" of 1996. Finally, China's stock market is falling fast. On Jan. 2, it hit its lowest level of the past three and one-half years.
China Grain Production Rose in 2002
China's grain production rose in 2002 for the first time in three years, reported the People's Daily. Grain output rose by 1% from 2001 to 457.1 million tons, the first such increase since 1999. The Ministry of Agriculture had predicted a 500-million-ton grain harvest in 2002. Acreage was down by 2%, but per-unit grain production grew by 3% from 2001.
In 2000, China's grain production had fallen 9% from 1999, after five years of bumper harvests. However, China continues to have a large grain stockpile, and remains self-sufficient in food.
Thailand Discusses Repealing the IMF's 'Slavery Laws'
A Thai government special committee has agreed to revise all 11 controversial economic laws, known as the "slavery laws," imposed during the Democrat Party-led government of former Prime Minister Chuan Leekpai, under IMF dictates. The committee members agreed that the laws had "led to a loss of the country's economic independence," according to Business Day on Jan. 8.
Kitti Limsakul, a member of the special committee which was chaired by Prime Minister Thaksin Shinawatra's economic adviser Pansak Vinyarat, told reporters that the committee had held four meetings during the past months. "We all agreed that all 11 economic laws should be revised in order to escape from the IMF framework," he said. He said that the bankruptcy law is one that most urgently needs revising, followed by the foreign investor's rights act. "The committee will soon submit the resolution to the Prime Minister for final consideration," he said.
Weng Tochirakarn, the chairman of Thailand's Democratic Movement Group, in his capacity as a member of the special committee, said: "At that time, the Thai government had to comply with the IMF's requirements. But now it is considered that it is a proper time for Thailand to be independent from the IMF's lending. We propose the revision of the so-called slavery laws because we want to regain the country's economic sovereignty, the Thai people's human rights and fair business operations."
A Thai official told EIR that several of the IMF-demanded privatizations may be reversed, including the much-contested break-up and privatization of the Electricity Generating Authority of Thailand (Egat).
Thai Energy Minister Recommends Five-Dam Project with Myanmar
Thai Energy Minister Pongthep Thepkanchana has given his backing for a $4.67-billion, five-dam power project to be built on the Salween River in Myanmar, premised on asking Thailand's Electricity Generating Authority (Egat) to seek large-scale users as partners in the project. The project would produce an estimated 20,000 megawatts of electricity, and is targetted for completion by 2013.
The sticking point is the ongoing debate in Thailand over whether or not to privatize Egat by 2004. Egat, which has an asset value just over $9.35 billion, would be unable to finance the Salween project if privatized. A government guarantee is needed for the project to proceed.
Pongthep said construction of Salween dams would boost Thailand as a center for electricity in the future, with any excess being sold to the proposed Asian Grid, i.e., other members of the Greater Mekong Subregion: Myanmar, Yunnan Province, China, Laos, Cambodia, Vietnam and Thailand. Two of the five dams are projected to start operations by 2012-13.
Electricity demand in Thailand last year was around 19,000 megawatts. GMS members' current need is about 50,000 megawatts, and is projected to skyrocket to 100,000 megawatts by 2010. Pongthep said the project would reduce the cost of electricity to Thailand roughly by half the current rate of $0.39-$0.4 per unit. Within six months, the Power Ministry is expected to release a final investment plan and the locations of the dams.
Indonesia Plans To Have Nuclear Power Plants by 2010
Indonesia could be building nuclear power plants by the end of this decade, as part of government efforts to provide alternative energy sources to the country's power-hungry households and businesses, said senior officials to the Singapore Straits Times on Jan. 8.
Minister of Research and Technology Hatta Rajasa told Antara State News Agency: "We have the capability to build nuclear power plants, and we should." The Minister added that the country could break new ground for its first nuclear-powered electricity generator. Its construction is targetted to start in 2010, and it is expected to be operational by 2015.
His aides at the Ministry, and officials of the National Atomic Agency (Batan), were similarly upbeat about the prospects of Indonesia going nuclear to meet its energy needs. Dr. Bambang Prasetyo, a program officer at the Ministry, told the Straits Times: "Based on projections of energy needs for the future, nuclear power makes sense.... we will still work with others like geothermal or hydro power. But nuclear is definitely one way to go." Indonesian scientists, Dr. Bambang added, are putting together feasibility studies and should have a first blueprint for the nuclear-energy program by 2006.
According to Batan officials, the government could revive abandoned projects first conceived during the rule of former President Suharto. Back in the mid-1990s, Research and Technology Minister B.J. Habibie had proposed several nuclear projects, including an 800-megawatt generator located in Central Java.
Indonesia Government Tries To Avert Protests Over IMF-Imposed Hikes
With business and labor organizations threatening to take mass protest action against IMF-imposed price hikes, the Indonesian government is offering tax and other incentives to businesses. The tax incentives were offered by Minister of Finance Boediono during a meeting between 150 businessmen from the Indonesian Chamber of Commerce and Industry (Kadin), and Vice President Hamzah Haz and other senior economic ministers on Jan 8. Sofjan Wanandi, chairman of the business group National Economic Recovery Committee (KPEN), told the Jakarta Post after the meeting: "This is a fairly good signal although it is not our primary demand. What we fought for is for the government to cancel the utility rate hikes."
Minister for the Economy Dorodjatun Kuntoro-Jakti told the businessmen that the government could not delay or cancel the increase in utility rates, because the government was close to meeting with the foreign donors grouped under the Consultative Group on Indonesia (CGI), which will convene in Bali on Jan. 21, and because the hikes were part of the agreement with the IMF.
The government's planned incentives were announced a day before a joint demonstration planned by workers and employers in Jakarta on Jan. 9. Sofjan said that the joint rally would still take place despite the promised incentives.
More U.S. Anti-Terrorist Training in Philippines
American military advisers will visit the Southern Philippines this week to prepare a fresh round of anti-terrorist training, local military officials said Jan. 6. The team will visit Zamboanga City to inspect possible facilities and accommodations for the trainers.
Ten months of anti-terrorist instruction beginning in February are planned for 16 Filipino light infantry companies of about 1,600 soldiers, said Filipino Defense Secretary Angelo Reyes. The training follows last year's Balikatan-021 exercises on Basilan island.
Philippines' Southern Command chief Lt. Gen. Narciso Abaya said the exercises would cost the U.S. military about $30 million, and involve two light reaction companies, four light infantry battalions, Air Force helicopter pilots, and 200-300 U.S. Green Berets, Navy, and Army personnel.
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