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pyongyang Koreas Need Give-Take Economic Relations

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By Chang Se-moon

Korea Times Columnist

The historic first inter-Korean summit between the then President Kim Dae-jung and North Korean leader Kim Jong-il was held in June 2000. At the end of the summit, the two leaders inked the North-South Joint Declaration, which eventually led to several exchanges of separated family members, joint economic development projects, and numerous exchanges and cooperation in various fields.

The upcoming second inter-Korean summit between President Roh Moo-hyun and North Korean leader Kim Jong-il is a political game that requires skillful negotiations on both sides, with the U.S., China, and Japan playing the role of more than by-standers.

If this assessment is accurate, the entire approach toward negotiating with North Korean leaders has to be restructured toward a more give-and-take attitude. There are two related issues that are the logical outcome of this new approach.

To be specific, the new package of incentives considered for North Korea should be substantive, not symbolic. Up to this point, all concessions made to North Korea, which include the 1999 easing of sanctions by President Clinton, were symbolic, not substantive.

Substantive concessions should include the MFN status on North Korea's exports to the U.S., removal of North Korea from the list of countries supporting international terrorism, easing of financial tightening, and a large amount of economic assistance.

Some may oppose providing substantive concessions to North Korea. However they should bear in mind that sometimes we need to cut the rope tying us to the past in order to make progress. It may not be easy, but we need to do it.

The offer of substantive incentives should be accompanied by verifiable reduction and elimination of North Korea's nuclear weapons programs and other measures by North Korea that can improve mutual confidence.

If my assessment of a changed approach by North Korean leaders toward an improved calculation of benefits and costs is accurate, North Korean leaders will respond positively toward substantive incentives.

This does not mean that North Korea will respond quickly, because I have observed for a long time that North Korean leaders are much more patient negotiators than South Korean leaders. This is where the role of President Roh becomes so important in the upcoming summit.

A successful inter-Korean summit requires skillful negotiations and, especially, patience on the part of President Roh. President Roh should focus on improving inter-Korean relations for long-term benefits of the Korean peninsula by requiring meaningful concessions from the North, not on establishing his own legacy by providing unilateral concessions. Any unilateral concessions such as redrawing the Northern Limit Line, scrapping the National Security Law, or halting joint military exercises with U.S. troops will eventually do more harm than good to both Koreas. Concessions of this nature, for instance, should be made in conjunction with North Korea's willingness to pull its troops out of the demilitarized zone.

Patient agreements between the two leaders may not look fancy in tomorrow's newspapers, but will do wonders to both Koreas many years from now.

The two leaders may agree to preserve the demilitarized zone as an inter-Korean national park, figure out how to utilize the low-wage labor force in North Korea under the highly-developed South Korean management skills to the extent of replacing unhealthy Chinese products in the global market, and promote greater cooperation in arts and sports that can unite the minds of the two Koreas.

Hopefully, both President Roh and North Korean leader Kim will find ways to promote peace and prosperity in the Korean peninsula beyond and above personal ambitions and legacies. I am sure that they will.

schangsemoon@yahoo.com