CODEL DANFORTH VISIT TO KOREA, JANUARY 6-10: REPORT ON SEOUL EVENTS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90B01390R000700900041-9
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 4
• Document Creation Date: December 23, 2016
• Document Release Date: December 14, 2010
• Sequence Number: 41
• Publication Date: January 21, 1986
• Content Type: CABLE

Declassified in Part - Sanitized Copy Approved for Release 2011/10/21: CIA-RDP90BO139OR000700900041-9
OLL/LD
INCOMING
PAGE 001 NC 9637720
TOR: 210412Z JAN 86 SEOUL 00575
RR RUEAIIB
ZNY CCCCC ZOC STATE ZZH
STU2029
RR RUEHC
DE RUEHUL #0575/01 0210355
ZNY CCCCC ZZH
R 210352Z JAN 86
FM AMEMBASSY SEOUL
TO RUEHC/SECSTATE WASHDC 7747
INFO RUEHDC/USDOC WASHDC
RUEHKO/AMEMBASSY TOKYO 0314
RUAGNPP/AMCONSUL PUSAN 1249
RUMJNG/AMCONSUL HONG KONG 9725
RUEHKOO/AMCONSUL OSAKA KOBE 0894
BT
EAP/K FOR JGAGNON
USDOC FOR 4430/IEP/OPB/EAP/SGODDIN
USIA WASHINGTON
E.O. 12356: NA
TAGS: OTRA, KS
SUBJECT: CODEL DANFORTH VISIT TO KOREA, JANUARY 6-10:
REPORT ON SEOUL EVENTS
1. SUMMARY: IN ITS VISIT TO THE ROK, WHICH INCLUDED THE
DMZ AND PUSAN IN ADDITION TO SEOUL, CODEL BROUGHT A
FORTHRIGHT MESSAGE OF U.S. TRADE PROBLEMS WHICH WAS
WELL ARTICULATED ON NUMEROUS OCCASIONS TO KEY KOREAN
GOVERNMENT OFFICIALS AND INDUSTRIALISTS. THIS
REAFFIRMATION OF THE CONGRESSIONAL MOOD WAS EXTREMELY
TIMELY AND CLEARLY FURTHERED U.S. INTERESTS IN KOREA.
END SUMMARY.
2. CODEL DANFORTH - WHICH IN ADDITION TO SENATOR
DANFORTH CONSISTED OF SENATORS SIMPSON, EAGLETON,
ROCKEFELLER, EXON, AND BAUCUS - SPENT THREE FULL,
EVENT-PACKED DAYS IN THE ROK. EVEN A CABINET RE-SHUFFLE
FAILED TO DERAIL OR DAMPEN THE CODEL'S PROGRAM. IN
FACT, KIM MAHN JE (M-R: KIM MAN CHE), THE NEWLY
APPOINTED DEPUTY PRIME MINISTER AND FORMER FINANCE
MINISTER, RECEIVED THE CODEL ON THE SAME DAY HE WAS
SWORN IN.
3. THE OFFICIAL CALLS BY THE CODEL IN SEOUL ON JANUARY
8 ENSUED IN THE FOLLOWING ORDER: COMMERCE MINISTER KUM
JIN HO (M-R: KUM CHIN-HO); FOREIGN MINISTER LEE WON
KYUNG (M-R: YI WON KYONG); INTERNATIONAL. ECONOMIC POLICY
COUNCIL (IEPC) SECRETARY GENERAL KIM KI-HWAN (M-R); ROK
PRESIDENT CHUN 000 HWAN (M-R: CHON TU-HWAN) AND,
FINALLY, THE NEW DEPUTY PRIME MINISTER.
4. SIMILAR THEMES WERE SOUNDED IN ALL THE MEETINGS BY
MEMBERS OF THE CODEL. SENATOR DANFORTH POINTED OUT TO
COMMERCE MINISTER KUM, FOR EXAMPLE, THAT UNTIL 1982 THE
CclhiC 1 rICI IT i wI
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U.S. HAD ALWAYS RUN A TRADE SURPLUS IN MANUFACTURED
GOODS. NOW, HE SAID, HIS CONSTITUENTS WERE LOSING JOBS,
AND HE WAS ENJOINED TO COME UP WITH A SOLUTION OR RISK
BEING VOTED OUT OF OFFICE. THE CONCERN WITH THE U.S.
TRADE DEFICIT, WITH THE DECLINE OF INDUSTRIES IN THE
U.S. AND WITH THE POLITICAL PRESSURES THESE DEVELOPMENTS
CREATE WAS THE DOMINANT THEME OF THE OFFICIAL CALLS AND
WAS ECHOED BY ALL THE SENATORS. THEY WARMLY
COMPLIMENTED KOREA ON ITS REMARKABLE ACCOMPLISHMENTS AND
ITS CONTRIBUTIONS AS AN ALLY. BUT'THEY WARNED THAT THE
VERY EXISTENCE OF A LIBERAL WORLD TRADING SYSTEM IS IN
JEOPARDY, IF THERE IS NOT MORE BALANCE. THEY
ACKNOWLEDGED THAT IT WAS JAPAN. NOT KOREA THAT WAS THE
MAJOR PROBLEM, AND SAID THEY WOULD SPEAK MUCH MORE
STRONGLY IN TOKYO THAN IN SEOUL. BUT KOREA HAD TO
RECOGNIZE THAT IT ALSO HAS A ROLE TO PLAY.
5. MINISTER KUM IN HIS REMARKS SAID KOREA APPRECIATES
THE CURRENT PROBLEMS OF THE U.S. AND WANTS TO COOPERATE.
NONETHELESS, HE CONTENDED, AS DID THE OTHER KOREAN
SPOKESMEN, THAT PUBLIC CONFRONTAION SUCH AS SECTION 301
ACTIONS AROUSED KOREAN EMOTIONALISM AND ONLY MADE IT
MORE DIFFICULT. HE ALSO EMPHASIZED THAT THERE IS A
MISCONCEPTION THAT KOREA IS MORE INTERNATIONALLY
COMPETITIVE THAN IS ACTUALLY THE CASE.
6. SENATOR DANFORTH DESCRIBED WORLD TRADE AS A GLOBAL
PROBLEM, PREDICTING THAT UNLESS SOME CHANGES WERE MADE
AROUND THE WORLD ENHANCING THE ACCEPTANCE OF U.S.
PRODUCTS AND SERVICES, WE COULD SLIP INTO A TRADE WAR
WITHIN 10 YEARS. SUCH AN EVENT, IN HIS OPINION, MIGHT
TRIGGER ANOTHER GREAT DEPRESSION. DANFORTH EMPHASIZED
WE ARE ALL IN THIS TOGETHER AND MUST ADDRESS THE PROBLEM.
7. THE FOREIGN MINISTER: AFTER INITIAL DISCUSSIONS OF
SECURITY AND INTERNATIONAL RELATIONS, INCLUDING THE
KOREAN NORTH-SOUTH TALKS, THE CONVERSATION ALSO TURNED
TO TRADE.SENATOR DANFORTH NOTED THAT THE 150 BILLION
DOLLAR US TRADE DEFICIT POINTED UP THE MAGNITUDE OF
THE PROBLEM. THE AMERICAN PEOPLE ARE NOT WILLING TO BE
ONLY ON THE RECEIVING END: THEY MUST SEE BENEFIT FOR THE
U.S. ECONOMY AS WELL. MINISTER LEE SAID THE TRADING
RELATIONSHIP WITH THE U.S. WAS OF PARAMOUNT IMPORTANCE
TO KOREA; HE EMPHASIZED THAT IT WAS VITAL FOR BOTH SIDES
TO ASSUAGE THE PRESENT FRICTIONS. DANFORTH COMMENTED
C 0 N F I D E N T I A L
EAP/K FOR JGAGNON
USDOC FOR 4430/IEP/OPB/EAP/SGODDIN
USIA WASHINGTON
E.O. 12356: NA
TAGS: OTRA, KS
SUBJECT: CODEL DANFORTH VISIT TO KOREA, JANUARY 6-10:
THAT HE HAD READ IN THE LOCAL PRESS THAT THE U.S. WAS
PICKING ON KOREA. HE MADE IT CLEAR TO THE MINISTER THAT
THIS WAS NOT THE U.S. INTENT BUT THAT WE DO HAVE A
PROBLEM, ONE SO SERIOUS THAT EVEN USTR YEUTTER HAD
RECENTLY QUESTIONED IF THE GATT WORKS FOR THE BENEFIT OF
THE U.S. IN A SUBSEQUENT PRIVATE MEETING WITH THE FOREIGN
MINISTER, SENATOR EAGLETON RAISED A NEW TOPIC, THAT OF
HUMAN RIGHTS. HE SAID THE 1988 KOREAN ELECTION SHOULD
PROVE A BENCHMARK FOR KOREAN POLITICS AND THE U.S. WOULD
CERTAINLY BE LOOKING FOR A FAIR ELECTION. MINISTER LEE
REPLIED THAT KOREA HAD MADE SUBSTANTIAL PROGRESS TOWARD
DEMOCRACY, BUT ONE MUST NOT FORGET THAT KOREA HAD
CONFIDENTIAL
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DIFFERENT HISTORIC AND CULTURAL TRADITIONS.
8. IEPC SECRETARY GENERAL KIM KI HWAN ACKNOWLEDGED THE
SERIOUSNESS OF THE SITUATION BUT WAS GENERALLY
OPTIMISTIC ABOUT PROSPECTS FOR WORKING OUT THE BILATERAL
TRADE ISSUES. HE WAS EXPECTING TO GO TO WASHINGTON BY
LATE JANUARY AND HOPEFULLY RESOLVE THE OUTSTANDING SEC.
301 CASES. HE MAINTAINED IT WOULD HELP GREATLY IN
MARSHALLING SUPPORT FOR ACQUIENCE TO U.S. REQUESTS,
HOWEVER, IF HE COULD RETURN WITH SOME, EVEN NOMINAL,
CONCESSION ON THE U.S. PART. HE SUGGESTED U.S.
RESPONSIVENESS TO KOREAN DESIRES FOR INCREASED CIVAIR
LANDING RIGHTS AS AN EXAMPLE. ON A SPECIFIC ISSUE OF
RESTRICTION ON SODA ASH IMPORTS RAISED BY SENATOR
SIMPSON, KIM NOTED THEY WERE DUE FOR FULL LIBERALIZATION
IN JULY 1986 AND OFFERED TO PERSONALLY TAKE UP THE
MATTER IF THERE WERE ANY PROBLEMS AFTER THAT DATE.
ANSWERING A QUERY ON THE SUSPENSION OF IMPORT OF HIGH
QUALITY BEEF FOR RESTAURANTS, HE REFERRED TO A DIFFICULT
SITUATION IN THE DOMESTIC BEEF MARKET, BUT SAID HE WAS
CERTAIN IT WAS ONLY TEMPORARY.
9. CALL ON PRESIDENT CHUN DOD HWAN WILL BE COVERED IN
SEPTEL.
10. SIMILAR TRADE THEMES WERE RAISED WITH THE NEW
DEPUTY PRIME MINISTER WHO WAS IN HIGH SPIRITS FOLLOWING
HIS PROMOTION. POLITICAL QUESTIONS WERE ALSO RAISED IN
THIS MEETING. SENATOR BAUCUS SUGGESTED EFFORTS SHOULD
BE MADE TOWARD FURTHER DEMOCRATIZATION, INCLUDING A FREE
PRESS AND AN ORDERLY PRESIDENTIAL SUCCESSION. THE DPM
REPLIED THAT POLITICAL DEVELOPMENT HAD BEEN A BUMPY ROAD
FOR THE ROK WHICH, IN FACT, HAD NEVER EXPERIENCED A
PEACEFUL TRANSFER OF POWER.
11. RETURNING TO TRADE QUESTIONS, SENATOR EXON
EMPHASIZED THE EXTREME TRADE BALANCE DIFFICULTIES THE
U.S. WAS EXPERIENCING, POINTING OUT THAT FOREIGNERS HAVE
NOT YET REALIZED THAT THE U.S. IS NOW A DEBTOR NATION.
IN THIS CONTEXT SENATOR SIMPSON SAID THAT THE
GRAMM-RUDMAN-HOLLINGS ACT WOULD HAVE PROFOUND INTERNAL
AND EXTERNAL CONSEQUENCES FOR THE U.S.
12. SENATOR ROCKEFELLER COMMENTED THAT IT WAS A VERY
DIFFERENT AMERICA TODAY FROM ONLY 5-6 YEARS AGO. HE
SAID HE HAD TO GIVE HIS CONSTITUENTS HOPE FOR THE FUTURE
AND HIS STATE, WEST VIRGINIA, WAS 20 PERCENT DEPENDENT
ON EXPORTS.
13. BREAKFAST BRIEFING - A BRIEFING BY SELECTED
SPEAKERS FROM THE AMERICAN CHAMBER OF COMMERCE,
STRESSING THE PROBLEMS THEY ENCOUNTER, TOUCHED OFF AN
ENERGENTIC QUESTION AND ANSWER SESSION.
SENATOR DANFORTH SPOKE AT A LUNCHEON HOSTED BY THE
KOREA-AMERICA ASSOCIATION (KAA) AND THE KOREA-U.S.
ECONOMIC COUNCIL (KUSEC).
HE ALSO TOOK QUESTIONS FROM THE FULL HOUSE, INCLUDING
NEARLY TWO HUNDRED STALWARTS OF THE KAA, KUSEC, THE
C O N F I D E N T I A L
CONFIDENTIAL
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EAP/K FOR JGAGNON
USDOC FOR 4430/IEP/OPB/EAP/SGODDIN
USIA WASHINGTON
E.O. 12356: NA
TAGS: OTRA, KS
SUBJECT: CODEL DANFORTH VISIT TO KOREA, JANUARY 6-10:
FEDERATION OF KOREAN INDUSTRIES, THE KOREAN CHAMBER OF
COMMERCE AND INDUSTRY AND THE AMERICAN CHAMBER OF
COMMERCE AS WELL AS ROKG OFFICIALS. HE DIRECTLY REFUTED
CHARGES THAT THE U.S. WAS PICKING ON KOREA, AND CITED
THE MANY CONTRIBUTIONS WE CONTINUE TO MAKE TO KOREA'S
WELL-BEING. HE ALSO LEFT NO DOUBTS IN THE MINDS OF HIS
AUDIENCE THAT THE WAY TO AVOID BEING CONSIDERED A SECOND
JAPAN IS TO ENSURE THAT KOREA DOES PURSUE THE SAME TRADE
STRATEGIES AS THAT NATION.
- PRESS CONFERENCE
EACH OF THE SENATORS ADDRESSED AND TOOK QUESTIONS AT
U.S.I.S. PRESS CONFERENCE ON THE CODEL'S FINAL MORNING
IN SEOUL. SENATOR DANFORTH, IN OPENING THE CONFERENCE,
MADE THE SAME POINTS HE HAD MADE IN HIS OFFICIAL
MEETINGS, EMPHASIZING THAT TRADE MUST BE A TWO-WAY
STREET AND THE IMPORTANCE TO KOREA OF A HEALTHY U.S.
ECONOMY. SENATOR EAGLETON, WHO WAS THE ONLY SENATOR IN
THE CODEL TO HAVE VISITED KOREA BEFORE (TEN YEARS
PREVIOUSLY), EXPRESSED HIS ADMIRATION FOR THE ECONOMIC
MIRACLE IN KOREA BUT ALSO TOOK THE OCCASION TO POINT OUT
THAT PROGRESS IN HUMAN RIGHTS IN THE ROK HAD NOT BEEN
IMPRESSIVE.
THE'CODEL WAS HOSTED AT DINNERS ON SUCCESSIVE EVENINGS
BY THE CHAIRMAN OF THE FOREIGN AFFAIRS COMMITTEE OF THE
NATIONAL ASSEMBLY, THE COMMERCE MINISTER, AND THE
CHAIRMAN OF THE HYUNDAI GROUP, INADDITION TO A
WELL-ATTENDED RECEPTION BY THE AMBASSADOR. AT ALL THESE
EVENTS THE CODEL HAD AMPLE OPPORTUNITY TO SPREAD THE
WORD OF THE CHANGED ATMOSPHERE IN THE U.S.
14. COMMENT: CODEL DANFORTH MADE A POSITIVE
CONTRIBUTION TO U.S. OBJECTIVES IN KOREA. WHILE THEIR
FRANK MESSAGE WAS SOBERING TO THEIR INTERLOCUTORS, THIS
COHESIVE GROUP OF SENATORS AND STAFFERS PROJECTED AN
OPEN, SINCERE IMAGE OF THE U.S. THEIR STRONG
REAFFIRMATION OF THE SERIOUSNESS WITH WHICH TRADE ISSUES
ARE BEING VIEWED IN THE CONGRESS AND BY THE AMERICAN
PEOPLE WAS EXTREMELY TIMELY AND WAS CONVEYED IN AN
UNUSUALLY EFFECTIVE, FORTHRIGHT MANNER. END COMMENTS.
WALKER
CONFIDENTIAL
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