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RE BLIC OF KOREA/JAPAN
4.
The Republic of Korea is concerned at how quickly Japan moves in establishing formal relations with North Korea. South Korea is
putting pressure on Japan not to recognize the North following the latter's entry into the United Nations, believing Japan might use
the UK's recognition as a reason to follow suit. The South does not wish North Korea to be given a diplomatic propaganda boost at a time
when North/South talks are about to re-start. There is a school of
thought in South Korea that suspects Japanese motives towards the
North, believing that their long-term objective is to prevent
unification (which might produce a more powerful economic competitor in the region).
REPUBLIC OF KOREA/NORTH KOREA
5. North and South Korean Prime Ministers met for the first time
since the Korean war in September 1990 in Seoul. Two meetings
followed in October and December but after this, in protest at
ROK/US annual military exercises (Team Spirit) due to be held in
February this year North Korea refused to proceed with any further
talks. These were reinstated for August but again failed to take
place. North Korea blamed a cholera outbreak in the South as the reason but it is thought that the North needed time to reassess its position following the coup attempt in the Soviet Union. But a meeting at Prime Ministerial level is now scheduled to take place in Pyongyang from 22 - 25 October. The talks are not expected to lead to any concrete proposals, particularly at a time when North Korea still refuses to undertake its NPT obligations (see para 1 above).
6.
Inspite of this, trade between the two Koreas is growing (US $122.9 million in the first 8 months of this year) and direct trade is now beginning to take place. The South is clearly keen to boost the North's economy: South Korea is clearly concerned about the costs of reunification based on the evidence provided by the
German experience.
I10APP
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