Report on progress of South-North ministerial-level talks

South and North Korea discussed in depth the tasks for the implementation of the July 15 Joint Declaration during the second ministerial talks in Pyongyang on Wednesday. The meeting proceeded in general in a form of North Korea¡¯s listening to the South¡¯s proposals first and agreeing on the acceptable overtures. The following are the items on which the South and the North headed toward an accord.

1. To hold separated family reunions two or three times more within this year.

Following the successful exchanges of separated families on August 15, the South and the North could reach an additional accord on the family reunion. The South and North will discuss detailed procedures at the Red Cross talks slated for September 5.

The agreement was possible as the North came up with a positive response to the suggestion. North Korean National Defense Commission Chairman Kim Jong-Il made during his meeting with presidents of South Korean news media on August 12 that the two sides make exchange visits each in September and October and proceed the project next year after reviewing it comprehensively.

The two sides were learned not to allot much time for the question of setting up a meeting place designed to institutionalize and regularize the family reunion because the issue has been already chosen as an agenda item of the September 5 Red Cross talks.

2. Economic Cooperation

North Korea showed interest most in the economic cooperation issue during the talks. A government official said that the Wednesday talks saw a remarkable progress in the economic sector. For a step higher economic cooperation, the South emphasized the guarantee of investment, prevention of double taxation, procedures for the settlement of disputes and preparation of institutional devices for liquidation settlement are important than any other else. The North shared the view with the South and agreed in principle to hold working-level negotiations. This is very meaningful in that North Korea began to understand the principle of market economy of the capitalism.

3. To hold working-level contact for the restoration of Gyeongui Railway in September

The most urgent thing among the agreements made during the first ministerial-level talks was the holding of a working-level contact for the restoration of Gyeongui Line because there were various difficult problems that should be resolved for the construction to reconnect the railway between the South and the North, scheduled to start on September 15. The problems include the removal of mines in the demilitarized zone and building of stations.

Although no tangible result about the construction of military confidence was produced in the talks, the agreement to hold working-level contact for the restoration of Gyeongui Line is expected to supplement this question, because close contacts between the military authorities of the two sides are essential in that such issues as the removal of mines and crossing the military demarcation line should be handled for the restoration of a railway passing through the DMZ.

Therefore, the projected working-level contacts are likely to be helpful to the building of mutual confidence between the South and the North, while lessening the burdens of the North from the installment of military hotlines or talks between military authorities.

4. Exchange of tourists

The South-North exchange of tourists was proposed by the North. This was also suggested by Chairman Kim Jong-Il during his meeting with presidents of South Korean news media. Under the exchange program, South Korean tourists will visit Mt. Baekdu in the middle of September, followed by North Koreans¡¯ tour to Mt. Halla in late September. The two sides agreed to exchange 100 tourists each for six-night and seven-day sightseeing under the condition that the inviting side will pay the expenses. It will be the first time since the national division for North Koreans to visit Jeju-do for the purpose of tourism.

On the whole, Chairman Kim Jong-Il¡¯s will played a great role for the two sides to make the agreements in the talks. But the talks left something to be desired because some pending issues to which the South attaches a great importance, including the questions of prisoners of war and those kidnapped to the North, were sidelined.