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CRS — Foreign Assistance to North Korea

May 8, 2012 Comments off

Foreign Assistance to North Korea (PDF)
Source: Congressional Research Service (via Federation of American Scientists)

Should the United States resume food, energy, and/or denuclearization assistance to North Korea? This is the major issue facing Congress in considering the provision of aid to Pyongyang. Between 1995 and 2008, the United States provided North Korea with over $1.3 billion in assistance: just over 50% for food aid and about 40% for energy assistance. Since early 2009, the United States has provided virtually no aid to North Korea. On February 29, 2012, after bilateral talks with the United States, North Korea announced a moratorium on long-range missile launches, nuclear tests, and nuclear activities (including uranium enrichment) at its Yongbyon nuclear facilities. It also said it would allow international nuclear inspectors to return to North Korea. The United States announced it would provide North Korea with 240,000 metric tons (MT) of food aid. However, the so-called “Leap Day deal” unraveled after North Korea on April 13, 2012, launched, in defiance of United Nations resolutions, a rocket to place an “earth observation satellite” into orbit. U.S. officials say that during bilateral negotiations they warned their counterparts that any rocket launch using ballistic missile technology would jeopardize the agreement.

Food Aid. North Korea has suffered from chronic, massive food shortages since the mid-1990s. Food aid–largely from China, South Korea, and the United States–has been essential in filling the gap. In 2011, in response to continued food shortages, Pyongyang reportedly asked the United States, South Korea, and other countries to provide large-scale food aid. The United Nations has issued an appeal for assistance. In 2008 and 2009, the United States shipped about a third of a planned 500,000 MT food aid pledge before disagreements with the North Korean government led to the program’s cessation.

Providing food to North Korea would pose a number of dilemmas for the United States. Pyongyang has resisted reforms that would allow the equitable distribution of food and help pay for food imports. Additionally, the North Korean government restricts the ability of donors to operate in the country. Multiple sources have asserted that some of the food assistance going to North Korea is routinely diverted for resale in private markets or other uses. However, it is likely that food aid has helped feed millions of North Koreans, possibly staving off a repeat of the famine conditions that existed in North Korea in the mid-late 1990s, when 5%-10% of the population died due to particularly severe food shortages.

In deciding how to respond to North Korea’s current request, the Obama Administration and Congress face a number of decisions, including whether to resume food aid; if so, whether to condition food aid on progress in security and/or human rights matters; whether to link assistance to Pyongyang easing its restrictions on monitoring; and whether to pressure China to monitor its own food aid. In 2011, many Members of Congress tried to prohibit food aid to North Korea.

Energy Assistance. Between 1995 and 2009, the United States provided around $600 million in energy assistance to North Korea. The aid was given over two time periods–1995-2003 and 2007-2009–in exchange for North Korea freezing its plutonium-based nuclear facilities. In 2008 and 2009, North Korea also took steps to disable these facilities. However, no additional energy assistance has been provided since 2009, when Pyongyang withdrew from the Six-Party Talks– involving North Korea, the United States, China, Japan, and Russia–over North Korea’s nuclear program. The move followed condemnation and sanctions by the U.N. Security Council for North Korea’s April 2009 launch of a suspected long-range missile and May 2009 test of a nuclear device.

In 2007 and 2008, the United States also provided technical assistance to help in North Korea’s nuclear disablement process. In 2008, Congress took steps to legally enable the President to give expanded assistance for this purpose. However, following North Korea’s actions in the spring of 2009, Congress rejected the Obama Administration’s requests for funds to supplement existing resources in the event of a breakthrough. Congress did approve monies for the State Department’s general emergency nonproliferation fund that the Administration could use in North Korea. The Obama Administration, along with the South Korean government, has said that it would be willing to provide large-scale development aid if North Korea takes steps to irreversibly dismantle its nuclear program.

This report will be updated periodically to track changes in U.S. provision of aid to North Korea.

CRS — Foreign Assistance to North Korea

April 3, 2012 Comments off

Foreign Assistance to North Korea (PDF)
Source: Congressional Research Service (via Federation of American Scientists)

Should the United States resume food, energy, and/or denuclearization assistance to North Korea? This is the major issue facing Congress in considering the provision of aid to Pyongyang. Between 1995 and 2008, the United States provided North Korea with over $1.3 billion in assistance: just over 50% for food aid and about 40% for energy assistance. Since early 2009, the United States has provided virtually no aid to North Korea. In late February 2012, after bilateral talks with the United States, North Korea announced a moratorium on long-range missile launches, nuclear tests, and nuclear activities (including uranium enrichment) at its Yongbyon nuclear facilities. It also said it would allow international nuclear inspectors to return to North Korea. The United States announced it would provide North Korea with 240,000 metric tons (MT) of food aid. However, two and a half week later, the agreement appeared in jeopardy after North Korea announced that in April it would launch a satellite, a move that would defy a number United Nations resolutions targeting North Korea. U.S. officials said that a satellite launch would “abrogate” the February agreement.

CRS — North Korea’s Nuclear Weapons: Technical Issues

March 27, 2012 Comments off

North Korea’s Nuclear Weapons: Technical Issues (PDF)
Source: Congressional Research Service (via Federation of American Scientists)

This report summarizes what is known from open sources about the North Korean nuclear weapons program—including weapons-usable fissile material and warhead estimates—and assesses current developments in achieving denuclearization. Little detailed open-source information is available about the DPRK’s nuclear weapons production capabilities, warhead sophistication, the scope and success of its uranium enrichment program, or extent of its proliferation activities. In total, it is estimated that North Korea has between 30 and 50 kilograms of separated plutonium, enough for at least half a dozen nuclear weapons. While North Korea’s weapons program has been plutonium-based from the start, in the past decade, intelligence emerged pointing to a second route to a bomb using highly enriched uranium. North Korea openly acknowledged a uranium enrichment program in 2009, but has said its purpose is the production of fuel for nuclear power. In November 2010, North Korea showed visiting American experts early construction of a 100 MWT light-water reactor and a newly built gas centrifuge uranium enrichment plant, both at the Yongbyon site. The North Koreans claimed the enrichment plant was operational, but this has not been independently confirmed. U.S. officials have said that it is likely other, clandestine enrichment facilities exist. A February 2012 announcement commits North Korea to moratoria on nuclear and long-range missile testing as well as uranium enrichment suspension at Yongbyon under IAEA monitoring.

CRS — Kim Jong-il’s Death: Implications for North Korea’s Stability and U.S. Policy

January 31, 2012 Comments off

Kim Jong-il’s Death: Implications for North Korea’s Stability and U.S. Policy (PDF)
Source: Congressional Research Service (via Federation of American Scientists)

North Korea represents one of the United States’ biggest foreign policy challenges due to its production and proliferation of nuclear weapons and missiles, the threat of attacks against South Korea, its record of human rights abuses, and the possibility that its internal problems could destabilize Northeast Asia. The North Korean government’s December 19, 2011, announcement of the death of the country’s “Dear Leader,” Kim Jong-il, has the potential to be a watershed moment in the history of the Korean Peninsula and the region. Ever since the death of his father, the “Great Leader” Kim Il Sung, in 1994, Kim Jong-il had sat at the apex of a highly centralized, brutal regime. During his tenure, his regime subjected North Korea’s people to profound impoverishment and massive food shortages, developed nuclear weapons and long-range missiles, and sold technology related to both programs abroad.

The effect of Kim Jong-il’s death on North Korea’s stability is uncertain. Many experts doubt that his anointed successor, his third son Kim Jong-un, will over the course of time be able to maintain effective control over his country due to his relative inexperience and the mounting internal and external pressures confronting North Korea. Yet, the North Korean regime under the elder Kim proved to be remarkably resilient, and many of the forces that held it together will continue to operate even if the young Kim himself remains weak. A key to the Kim Jong-un regime’s stability will be its ability to continue obtaining and distributing funds, mostly from external sources. Of particular importance will be China’s willingness to provide commercial, financial, and other support for the regime. Over the years, China reportedly has resisted repeated U.S. and South Korean attempts to discuss North Korea contingency plans. It is unclear whether Kim Jong-il’s death will change this situation, though there have been calls to redouble outreach to Beijing. A possible opportunity for high-level dialogue could come in January 2012, when Chinese Vice President Xi Jinping visits Washington, DC. Xi is widely expected to be chosen as China’s top leader over the coming year.

Very little is known about the inner workings of the North Korean elite, as evidenced by the U.S. and South Korean intelligence services apparent surprise at the announcement of Kim Jong-il’s death. Even less is known about Kim Jong-un, who is believed to be in his late 20s and to have attended primary school in Switzerland in the 1990s. Kim Jong-un was being groomed to be the successor since his father’s August 2008 stroke that put a spotlight on the succession question.

In the days after the announcement, U.S. and South Korean officials issued statements that expressed support for the North Korean people, hope that the new leadership will continue recent diplomatic initiatives with Washington and Seoul, and a desire for a smooth transition in Pyongyang. (For the text of these statements as well as a joint message from several Chinese state and communist party organs, see the Appendix. U.S. and South Korean influence over events in North Korea is widely believed to be limited. In the coming weeks, the Obama Administration will be confronted with a decision of whether to persist with two proposed new agreements that reportedly were in the process of being concluded with the Kim Jong-il government in mid- December: a resumption of U.S. food assistance, and in return, a reported agreement by North Korea to shut down key sites of its nuclear program and open them to international monitoring.

CRS — Foreign Assistance to North Korea

June 28, 2011 Comments off

Foreign Assistance to North Korea (PDF)
Source: Congressional Research Service (via U.S. Department of State, Foreign Press Center)

Since 1995, the United States has provided North Korea with over $1.2 billion in assistance, of which about 60% has paid for food aid and about 40% for energy assistance. As of early February 2011, the United States is not providing any aid to North Korea, except for a small medical assistance program. The Obama Administration, along with the South Korean government, have said that they would be willing to provide large-scale development aid if North Korea takes steps to irreversibly dismantle its nuclear program.

Energy Assistance. After a two-year hiatus, U.S. energy aid resumed in the fall of 2007 after progress was made in the Six-Party Talks—involving North Korea, the United States, China, Japan, and Russia—over North Korea’s nuclear program. The United States and other countries began providing heavy fuel oil (HFO) in return for Pyongyang freezing and disabling its plutonium-based nuclear facilities. However, no additional energy assistance has been provided through the Six-Party process since North Korea withdrew from the talks in 2009, following condemnation and sanctions by the U.N. Security Council for North Korea’s April 2009 launch of a suspected long-range missile and May 2009 test of a nuclear device.

In 2007 and 2008, the United States also provided technical assistance to help in North Korea’s nuclear disablement process. In 2008, Congress took steps to legally enable the President to give expanded assistance for this purpose. However, following North Korea’s actions in the spring of 2009, Congress rejected the Obama Administration’s requests for funds to supplement existing resources in the event of a breakthrough. Congress did approve monies for the State Department’s general emergency non-proliferation fund that the Administration could use in North Korea.

Food Aid. Since the mid-1990s, North Korea has suffered from chronic, massive food shortages. Food aid—largely from China, South Korea, and the United States—has been essential in filling the gap. In 2008 and 2009, the U.S. shipped about a third of a planned 500,000 metric ton food aid pledge before disagreements with the North Korean government led to the program’s cessation. In 2010 and 2011, in response to continued food shortages, Pyongyang reportedly asked the United States and South Korea to renew large-scale food aid, and the U.N. has issued an appeal for assistance.

Providing food to North Korea poses a number of dilemmas for the United States. Pyongyang has resisted reforms that would allow the equitable distribution of food and help pay for food imports. Additionally, the North Korean government restricts the ability of donors to operate in the country. Multiple sources have asserted that some of the food assistance going to North Korea is routinely diverted for resale in private markets or other uses. However, it is likely that food aid has helped feed millions of North Koreans, possibly staving off a repeat of the famine conditions that existed in North Korea in the mid-late 1990s, when 5%-10% of the population died due to food shortages.

In deciding how to respond to North Korea’s current request, the Obama Administration must make a number of decisions, including whether to resume food aid; if so, whether to condition food aid on progress in security and/or human rights matters; whether to link assistance to Pyongyang easing its restrictions on monitoring; and whether to pressure China to monitor its own food aid.

This report will be updated periodically to track changes in U.S. provision of aid to North Korea.

CRS — Imports from North Korea: Existing Rules, Implications of the KORUS FTA, and the Kaesong Industrial Complex

June 14, 2011 Comments off

Imports from North Korea: Existing Rules, Implications of the KORUS FTA, and the Kaesong Industrial Complex (PDF)
Source: Congressional Research Service (via Federation of American Scientists)

In early 2011, many Members of Congress focused their attention on U.S. rules and practices governing the importation of products and components from North Korea. Their interest was stimulated by debate over the proposed South Korea-U.S. Free Trade Agreement (KORUS FTA) and the question of whether the agreement could lead to increased imports from North Korea. Some observers, particularly many opposed to the agreement, have argued that the KORUS FTA could increase imports from North Korea if South Korean firms re-export items made in the Kaesong Industrial Complex (KIC), a seven-year-old industrial park located in North Korea, where more than 100 South Korean manufacturers employ over 45,000 North Korean workers. Two concerns expressed by critics are (1) that South Korean firms could obtain low-cost KIC- made goods or components, incorporate them into finished products and then reship the goods to the United States with “Made in [South] Korea” labels so that they would receive preferential treatment under the KORUS FTA; and (2) that such exports would benefit the North Korean government.

At present, North Korea’s relative economic isolation and an array of U.S. restrictions have resulted in less than $350,000 in U.S. cumulative imports from North Korea since 2000. Thus, the issue of U.S. imports from North Korea is essentially about what might happen in the future.

CRS — Nuclear Weapons R&D Organizations in Nine Nations

May 10, 2011 Comments off

Nuclear Weapons R&D Organizations in Nine Nations (PDF)
Source: Congressional Research Service (via OpenCRS)

Seven nations—China, France, India, Pakistan, Russia, the United Kingdom, and the United States—possess nuclear weapons. In addition, North Korea tested a nuclear explosive device in 2006 and announced that it had conducted another such test in 2009, and Israel is widely thought to have nuclear weapons. As an aid to Congress in understanding nuclear weapons, nuclear proliferation, and arms control matters, this report describes which agency is responsible for research and development (R&D) of nuclear weapons (i.e., nuclear explosive devices, as distinct from the bombers and missiles that deliver them) in these nations and whether these agencies are civilian or military. It also traces the history of such agencies in the United States from 1942 to the present. This report will be updated annually, or more often as developments warrant.

In the United States, the Army managed the nuclear weapons program during World War II. Since 1946, weapons R&D has been managed by civilian agencies, at present by the National Nuclear Security Administration, a semiautonomous agency in the Department of Energy.

China’s nuclear weapons R&D is apparently under the direction of the military, collectively called the People’s Liberation Army.

France’s nuclear weapons R&D is supervised by the Ministry of Defense, which delegates the direction of these programs to the French Atomic and Alternative Energy Commission (CEA). However, as with NNSA in the United States, CEA is not a part of the Ministry of Defense. CEA also conducts nuclear programs in science and industry, under the supervision of other ministries.

India’s nuclear weapons R&D appears to be controlled by the Department of Atomic Energy, which is under the direct control of the Prime Minister.
Israel’s nuclear program is under civilian control, but since Israel neither confirms nor denies that it possesses nuclear weapons, it classifies information on nuclear weapons, including organizations responsible for R&D. The Israel Atomic Energy Commission reportedly has overall responsibility for Israel’s nuclear weapons program, and the Director General of that commission reports directly to the Prime Minister.

North Korea’s Ministry of Atomic Energy Industry is in charge of the day-to-day operation of the nuclear weapons program. Under it are nuclear-related organizations. Policy is decided by leader Kim Jong-il and other Communist Party and military leaders who advise him.

Pakistan’s National Command Authority (NCA) supervises the functions and administration of all of Pakistan’s “Strategic Organizations,” which are composed of all organizations involved in nuclear weapons. The Prime Minister is the chair of the NCA, and the membership includes senior civilian and military leaders.
Russia’s State Atomic Energy Corporation (Rosatom) is responsible for nuclear weapons R&D and production. It is a civilian agency, though it has many links to the military.

In the United Kingdom, a private company, AWE Management Limited, manages and operates the Atomic Weapons Establishment (AWE), a government-owned, contractor-operated entity. The Ministry of Defence (MoD), which is headed by a civilian, controls the operations, policy, and direction of AWE and can veto actions of the company. The MoD provides most of the funding for AWE.

CRS — The Kaesong North-South Korean Industrial Complex

May 3, 2011 Comments off

The Kaesong North-South Korean Industrial Complex (PDF)
Source: Congressional Research Service (via OpenCRS)

This purpose of this report is to provide an overview of the role, purposes, and results of the Kaesong Industrial Complex (KIC) and examine U.S. interests, policy issues, options, and legislation. The KIC is a six-year old industrial park located in the Democratic People’s Republic of Korea (DPRK or North Korea) just across the demilitarized zone from South Korea. As of the end of 2010, over 120 medium-sized South Korean companies were employing over 47,000 North Korean workers to manufacture products in Kaesong. The facility, which in 2010 produced $323 million in output, has the land and infrastructure to house two to three times as many firms and workers. Products vary widely, and include clothing and textiles (71 firms), kitchen utensils (4 firms), auto parts (4 firms), semiconductor parts (2 firms), and toner cartridges (1 firm).

Despite a rise in tensions between North and South Korea since early 2008, the complex has continued to operate and expand. The KIC was not shut down in 2010 despite two violent incidents between the two Koreas that year: the March sinking of a South Korean naval vessel, the Cheonan, which was found to be caused by a North Korean torpedo, and North Korea’s artillery attack on a South Korean island in November. Indeed, the complex has become virtually the last vestige of inter-Korean cooperation. After the Cheonan sinking, South Korea announced it would cut off all inter-Korean economic relations except the Kaesong complex. It also has reduced the number of South Korean workers—primarily government officials and business managers—at the complex because of worries about them being taken hostage by North Korea.

The KIC represents a dilemma for U.S. and South Korean policymakers. On the one hand, the project provides an ongoing revenue stream to the Kim Jong-il regime in Pyongyang, by virtue of the share the government takes from the salaries paid to North Korean workers. South Korean and U.S. officials estimate this revenue stream to be around $20 million per year. On the other hand, the KIC arguably helps maintain stability on the Peninsula and provides a possible beachhead for market reforms in the DPRK that could eventually spill over to areas outside the park and expose tens of thousands of North Koreans to outside influences, market-oriented businesses, and incentives.

The United States has limited direct involvement in the KIC, which the United States has officially supported since its conception. At present, no U.S. companies have invested in the Kaesong complex, though a number of South Korean officials have expressed a desire to attract U.S. investment. U.S. government approval is needed for South Korean firms to ship to the KIC certain U.S.-made equipment currently under U.S. export controls. The Korea-U.S. Free Trade Agreement (KORUS FTA), which has yet to be submitted to Congress for approval, provides for a Committee on Outward Processing Zones (OPZ) to be formed and to consider whether zones such as the KIC will receive preferential treatment under the FTA. Although the KORUS FTA says that the Executive branch will seek “legislative approval” for any changes to the agreement, Congress’s precise role in accepting or rejecting these changes is not clear.

Another issue raised by the KIC is whether components made in the complex can enter the United States if they are incorporated into products that are manufactured in South Korea and that qualify as originating in South Korea. This possibility is likely to be determined mainly by the KIC’s evolution; the more that is produced in the complex, the more products are likely to enter South Korea’s supply chain.

CRS — Non-Governmental Organizations’ Activities in North Korea

April 26, 2011 Comments off

Non-Governmental Organizations’ Activities in North Korea (PDF)
Source: Congressional Research Service (via Federation of American Scientists)

A number of non-governmental organizations (NGOs)—non-profit, charitable institutions—have been active in North Korea since the mid-1990s. Although their work is relatively limited in scope, it is of interest to U.S. policy-makers because of the deep isolation of the regime in Pyongyang. Several American and international NGOs have provided assistance to North Korea in humanitarian relief, development, health, informal diplomacy, science, communication and education. A relatively recent trend is that a growing number of NGOs, particularly in South Korea, are run by or have North Korean defectors on staff.

Non-governmental organizations’ activities in North Korea have stirred some controversy. Some observers believe that NGOs’ projects represent one of the few ways to improve the lives of ordinary North Koreans, and that their work provides first-hand accounts about social conditions in North Korea. Some NGOs have a comparative advantage in dealing with North Korea, with over a decade’s experience working with North Korean officials and institutions. However, others argue that NGOs’ programs aid North Korea’s regime, and that given the lack of transparency and tight restrictions imposed on them by the regime, their funds are vulnerable to diversion by North Korean officials.

Two issues bear consideration: Have NGOs contributed to improving the lives of ordinary North Korean citizens in sustainable ways? Can NGOs evaluate the impact of their operations and take steps to minimize diversion of the resources they deliver to North Koreans? In short, are they effective, and should the United States welcome their work in spite of the North Korean regime’s treatment of its citizens? This paper will address some of the publicly disclosed activities that NGOs have undertaken in North Korea.

The role of NGOs in North Korea may re-emerge as a congressional interest, as the Obama Administration has expressed interest in restarting humanitarian assistance to North Korea. During the Bush Administration, five large U.S. NGOs were part of a food delivery program that enjoyed some success. Some believed they were more effective than international organizations at navigating the North Korean system to get aid where it was needed. But some organizations opted to cease their operations when North Korean restrictions became too onerous.

North Korea (Democratic People’s Republic of Korea): Country Specific Information

March 6, 2011 Comments off

North Korea (Democratic People’s Republic of Korea): Country Specific Information
Source: U.S. Department of State

The Democratic People’s Republic of Korea (North Korea or the DPRK) is a highly militaristic Communist state located on the Korean Peninsula between northeast China and the Republic of Korea (South Korea or ROK), with land borders with China, Russia and South Korea. Currently the border between North and South Korea is closed. The United States does not maintain diplomatic or consular relations with North Korea. The Swedish Embassy located in Pyongyang acts as the United States’ interim protecting power and provides basic consular services to U.S. citizens traveling in North Korea. Please refer to Special Circumstances for additional information.

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