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Seoul n.d. [OA 7565] [2]
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323153772
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Seoul n.d. [OA 7565] [2]
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Records of the White House Office of Speechwriting (George H. W. Bush Administration)
Speech Backup Chronological Files
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Originally Processed With FOIA(s):
FOIA Number:
S; 2004-2265-S
S
FOIA
MARKER
This is not a textual record. This is used as an
administrative marker by the George Bush Presidential
Library Staff.
Record Group/Collection:
George H.W. Bush Presidential Records
Collection/Office of Origin:
Speechwriting, White House Office of
Series:
Speech File Backup Files
Subseries:
Chron File, 1989-1993
OA/ID Number:
13790
Folder ID Number:
13790-002
Folder Title:
Seoul n.d. [OA 7565] [2]
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26
22
2
1
Administration of George Bush, 1990 / Apr. 5
to Panama shall
Nomination of Wendy Lee Gramm To
the U.S.-Japan relationship by resolving on-
ken or proceeding
Be a Commissioner and Chairman of
going trade and economic issues. An agree-
ncluded or deter-
the Commodity Futures Trading
ment has been concluded on supercom-
date of this order,
Commission
puters, and agreements in principle have
ding based on any
April 5, 1990
been reached on satellites and telecom-
e effective date of
munications.
or duties that ma-
The President has nominated Wendy Lee
Today the U.S.-Japan SII working group
ere incurred prior
Gramm to be a Commissioner of the Com-
released its interim report on the progress
his order. Pursuant
modity Futures Trading Commission for the
achieved to date. The SII talks represent an
1706) of IEEPA, I
term expiring April 13, 1995, and he has
he continuation of
also nominated her to serve as Chairman of
approach that may be unique in the history
of bilateral trade and economic discussions.
to transactions in-
the Commission. This is a reappointment.
The talks were designed to identify and re-
h the Government
Since 1988 Dr. Gramm has served as
solve the structural impediments that con-
est is necessary on
Chairman of the Commodity Futures Trad-
tribute to economic tensions between the
ng Panama.
ing Commission. Prior to this, she served as
two countries. Accordingly, the interim
effect immediately.
Administrator for Information and Regula-
report and assessment identifies specific
tory Affairs at the Office of Management
George Bush
areas impeding the adjustment of the trade
and Budget, 1985-1988; Executive Director
imbalance in both countries. The interim
of the Presidential Task Force on Regula-
tory Relief, 1986-1988; Director of the
report is the first major step in a process
Bureau of Economics at the Federal Trade
that will include a final SII report in July as
Commission, 1983-1985; Assistant Director
well as implementation and follow-on.
the Federal Regis-
90]
in the Division of Consumer Protection at
Prime Minister Kaifu and the political
the Bureau of Economics at the Federal
leadership of Japan have worked long and
Trade Commission, 1982-1983; and re-
hard to produce the policy commitments
search staff member for the Institute for
embedded in the SII interim report. Be-
of the House and
Defense Analyses, 1979-1982. In addition,
cause structural problems are deeply in-
nate on the
she served in several positions at Texas
grained in both economies, complete results
A&M University, including associate profes-
ergency With
will not come quickly. However, the SII in-
sor in the department of economics, 1975-
terim report is an important way station
1979; director of undergraduate programs,
along the road leading to a strengthened
1974-1977; and assistant professor, 1970-
U.S.-Japan relationship. We believe that the
1975.
Mr. President:)
Prime Minister will continue to exercise his
Executive order, a
Dr. Gramm graduated from Wellesley
assertive leadership on these issues and that
d, stating that the
College (B.A., 1966) and Northwestern Uni-
this will greatly facilitate the work on re-
ically elected gov-
versity (Ph.D., 1971). She was born January
maining economic and trade issues. Japan's
ended the unusual
10, 1945, in Waialua, HI. Dr. Gramm is
inputs to the SII interim report have been
to the national se-
married, has two children, and resides in
very positive ones, and we look forward to
d economy of the
Washington, DC.
further cooperation on the final report in
osed by the poli-
July. For its part, the United States will con-
riega regime. The
tinue to do its utmost to address the struc-
S the Panamanian
tural issues identified in the SII interim
pril 8, 1988, while
report as affecting the competitiveness of
and blocking au-
the U.S. economy.
law.
Statement by Press Secretary Fitzwater
on the Japan-United States Structural
As President Bush has said, the leadership
Impediments Initiative Negotiations
of Prime Minister Kaifu has brought a new
George Bush
April 5, 1990
spirit of cooperation to our relationship-a
positive, cooperative force which will
e sent to Thomas
Since the March 2-4 Palm Springs meet-
strengthen our security relationship and en-
ouse of Represent-
ing between President Bush and Prime
hance the U.S.-Japan global partnership
President of the
Minister Kaifu, Japan and the United States
while simultaneously facilitating the solu-
have been busily engaged in strengthening
tion of outstanding economic differences.
531
Administration of George Bush, 1990 / Apr. 4
the first step on
I regret that another Passover is here
last month. The President expressed his
ty to freedom. All
with Leonid still in the Soviet Union. I wish
conviction that Prime Minister Kaifu de-
olemn pride of mil-
that he were here with you in America so
serves a very large share of the credit for
men, and children
that he, too, could experience the freedoms
settling the specific trade issues and for
ommemorate the
we enjoy. And we ask that you convey a
achieving substantial progress on SII.
:y of courage and
message to Leonid and all others who still
The President emphasized that SII is an
am of a better to-
await freedom: They are not forgotten.
ongoing process and that he hopes both
The Nobel laureate-a friend to so many
sides will take further steps in the final SII
ople all throughout
in this room-Elie Wiesel said: "Just as de-
report in July and the resulting follow-on
1 that epic journey,
spair can come to one only from other
phase. Bringing about structural adjust-
liberty and peace.
human beings, hope, too, can be given to
ments will not be easy on either side of the
ir struggle for de-
one only by other human beings." Zev, you
Pacific, but both governments are commit-
have given us hope. For that, we admire
m for the strength
ted to achieving a positive interim SII
you. And together, we look forward to the
ay for their success.
report as well as a more comprehensive fin-
day when no nation interferes with the
ished product in July. We have had very
of rejoicing for the
faith of any of its people.
substantial success to date, but we must
et Jews who have
So, thank you all for being here with us
continue our efforts because neither the
1 this year. We are
on this very solemn and special occasion.
Japanese consumer nor the American
bing hand, over the
And once again, I rejoice in your happiness,
public will be convinced until they see con-
the historic emigra-
and we're so pleased you're here. And now
crete results.
nion of those who
I will sign this.
The President emphasized the vital im-
eave. The modern
portance of maintaining excellent relations
for all those who
Note: The President spoke at 10:50 a.m. in
with Japan not only in, trade but with
dom. The United
the Roosevelt Room at the White House.
regard to security and the growing global
0 open up this life-
partnership between the United States and
te to do everything
Japan. In particular, the President compli-
possible for Soviet
mented the Government of Japan for its
cluding continuing
assistance efforts in Eastern Europe and in
indirect flights. We
Statement by Press Secretary Fitzwater
will celebrate the
on the President's Meeting With the
Central America. In all of these matters, the
è're going to keep
Special Emissaries of Prime Minister
President praised the forthright and asser-
hore can join them.
Toshiki Kaifu of Japan
tive leadership demonstrated by Prime
Minister Kaifu and credited him with
3 Exodus, it is my
April 4, 1990
having created a new spirit of cooperation
e Zev Raiz to the
ears of waiting. Zev
President Bush met with former Ambas-
between the United States and Japan.
and your children
sador to the United States Matsunaga and
opiness together in
Deputy Foreign Minister Owada, who are
el. For nearly two
Special Emissaries of Prime Minister Kaifu
u've been a brave
of Japan. The Special Emissaries delivered a
Remarks at the Presentation Ceremony
i. And we acknowl-
letter from Prime Minister Kaifu to the
for the National Teacher of the Year
ud the dramatic
President which contained details on the
Award
place in the Soviet
efforts made by the Government of Japan
April 4, 1990
the emigration of
since the Palm Springs meeting on March
ught to leave. But
2-4. The discussion focused on the progress
Well, to the Members of the Congress
assure you we will
made in trade and economic matters.
and Senate that are here today, thank you
e left behind.
Agreements have been concluded on su-
all for coming, and welcome to the White
welcome Natasha
percomputers, satellites, and telecommuni-
House. Secretary Cavazos, Senator Pell and
ouse. I admire the
cations; and substantial progress has been
Representatives Lowery and Hunter, and
tion that you and
achieved in the ongoing SII [Structural Im-
Bill Keene and Gordon Ambach, Robert
ave shown through
pediments Initiative] process. In addition,
Gwinn, Norman Brown, and specially to our
You have become
Prime Minister Kaifu has said that he hopes
distinguished Teacher of the Year, Jan
ik community, and
an agreement will be forthcoming to re-
Gabay, Barbara and I are honored to have
ve been invaluable
solve the forest products issue. The Presi-
you all here.
onvince the Soviet
dent was very appreciative of all of the
The kind of people Jan represents are
omises.
work that has been accomplished over the
ambassadors to the most powerful province
521
national
ical Fitness and
Week Ending Friday, April 6, 1990
:dia
Proclamation 6111-United States
Naval Reservists, we also pay tribute to
Naval Reserve Month, 1990
their families and employers-their gener-
615, 523
March 30, 1990
ous support and encouragement help our
reservists to fulfill the dual role of citizen-
By the President of the United States
sailor.
of America
In honor of the thousands of Americans
of War Recognition
A Proclamation
who have served this country as U.S. Naval
k-528
Reservists, and in grateful recognition of
1 American Week-
On March 3, 1915, the Congress enacted
those reservists who have given their lives
legislation establishing the Federal Navy
in the line of duty, the Congress, by Senate
e Month-503
Reserve. That act has enabled the United
Joint Resolution 266, has designated March
States to remain at a high level of military
1990 as "United States Naval Reserve
preparedness in times of peace, as well as in
Month" and has authorized and requested
times of crisis.
-543
the President to issue a proclamation in ob-
Hundreds of thousands of Americans
servance of this occasion.
have served this Nation proudly and ably as
dential
Now, Therefore, I, George Bush, Presi-
Naval Reservists. More than 600,000 Naval
dent of the United States of America, do
ons-510
Reservists rallied to action during World
hereby proclaim March 1990, the 75th an-
War I. During the Second World War,
niversary of the Naval Reserve, as United
: Emissaries of Prime
when the United States was embroiled in a
States Naval Reserve Month.
life-and-death struggle to defend freedom
521, 531
In Witness Whereof, I have hereunto set
and democracy from the brutal forces of
oundation-530
my hand this thirtieth day of March, in the
totalitarianism, 80 percent of our Naval per-
sonnel were reservists. Whenever the lives
year of our Lord nineteen hundred and
inister
of innocent people have been threatened,
ninety, and of the Independence of the
United States of America the two hundred
Gorbachev-528
whenever any of our other national inter-
and fourteenth.
ests have been at stake, our reservists have
demonstrated clearly their value as part of
George Bush
America's fighting forces.
dent-546
During the Berlin Crisis, the Korean and
[Filed with the Office of the Federal Regis-
ress releases-546
Vietnam conflicts, the Mayaguez incident,
ter, 11:53 a.m., April 2, 1990]
se announcements-
and in Grenada, the Persian Gulf, and
Note: The proclamation was released by the
Panama, Naval Reservists consistently
the Senate-546
played vital roles in advancing our national
Office of the Press Secretary on April 2.
objectives. Yet they have also provided in-
over and distributed
valuable assistance to their country during
nonmilitary emergencies. For example, in
the aftermath of Hurricane Hugo and the
Statement by Press Secretary Fitzwater
devastating 1989 Loma Prieta earthquake
on the Japan-United States Structural
that struck the San Francisco Bay area,
Impediments Initiative Negotiations
Committee of the Federal
hardworking Naval Reservists were on the
37 FR 23607; 1 CFR Part
April 2, 1990'
front lines of relief efforts.
Superintendent of Docu-
The men and women of the Naval Re-
Prime Minister Kaifu of Japan this morn-
ashington, DC 20402. The
serve boast a long tradition of courageous
cuments will be furnished
ing telephoned President Bush to express
5.00 per year ($96.00 for
and dedicated service to their fellowman.
his interest in resolving issues related to the
ribers for $68.75 per year,
As we enter a new decade and a new cen-
Structural Impediments Initiative. The
ments, Government Print-
charge for a single copy is
tury, their operational readiness will contin-
Prime Minister has sent two personal emis-
ue to be critical to our Nation's security and
saries to meet with the President and ad-
publication of material ap-
well-being. That is why, as we salute all
ministration officials to emphasize the Japa-
Presidential Documents.
503
Apr. 2 / Administration of George Bush, 1990
nese Government's commitment to
But there was a time when most Ameri-
whistlestops. Ameri
progress. The two emissaries are former
cans knew their Presidents distantly, from
and through the p
Ambassador to the United States Matsunaga
woodcut prints in the weekly newspaper.
we share them with
and Deputy Foreign Minister Owada. They
The circle of democracy in ancient Athens
live in a time when
arrive at 10 o'clock this morning and will
and Rome was even more limited, just to
travel reservations
meet today and tomorrow with General
those within hearing range of the debates
flash from Hong K
Scowcroft [Assistant to the President for Na-
inside the Parthenon or the Forum. But
Bonn, Bonn to Bost
tional Security Affairs] and Secretary of
today, through free, over-the-air broadcasts,
eye.
State Baker. They will meet with President
you have brought millions of living rooms
Roam among the
Bush on Wednesday. In addition, they will
within hearing range; you've made every
this convention cent
deliver a letter from Prime Minister Kaifu
home a part of the American forum. In fact,
football fields chock
to President Bush concerning trade issues.
on this very day, you are providing-for the
ets in telecommuni
The Structural Impediments Initiative
6,000 foreign broadcasters in attendance,
puters and modem:
talks begin today in Washington at the State
through your international seminars, and
optical fibers, satel.
Department. The U.S. side will be headed
through USIA's [U.S. Information Agency]
growing web of WO.
by Richard T. McCormack, Under Secretary
WORLDNET-a seminar for the world.
growing network linl
for Economic Affairs; Linn Williams,
Television, which began as the American
village." The inform:
Deputy U.S. Trade Representative; and
forum, has become the world forum. And
adornment to moder
Charles Dallara, Assistant Secretary of the
of who and what we
so, when a lone, brave man stood up to a
Treasury. An interim report on these meet-
column of tanks in Tiananmen Square, the
mation age.
ings will be issued on April 4, with a final
world stood with him. When the people of
Last May, I disc
report produced in July.
Europe with the (
Prague sang the first Christmas carols in
German city nestled 1
over 40 years, the world sang with them.
the Rhine River. An
And when the first German took the first
there that I apprecia
hammer to that wall of shame in Berlin, the
expression, "In the
Remarks at the Annual Convention of
world shared in an historic act of courage.
Word." For it was i
the National Association of
We all know that governments can
that the inventor 0
Broadcasters in Atlanta, Georgia
censor, governments can silence, but the
Johann Gutenberg, fii
April 2, 1990
voice of freedom will not be stilled as long
of the ages into the
as there is an America to tell the truth.
knowledge-hungry re
Thank you for that welcome. To Messrs.
These sounds and images of the Revolution
tion made possible a
Mays and Fritts, thank you both, and to all
of '89 belong to the world. But it was here
journals of the Enlig
of the rest of the leaders of the NAB that
in America that a free people first explored
American Revolution,
are here today. And also I understand there
how to put the airwaves into the service of
of Thomas Paine to t
are a lot of Members of the United States
democracy.
Federalist Papers." Y
Congress here. In my line of work, you
We accept regulation, but we firmly
out of that one inver
always pay your respects to the Members of
reject government programming. We reject
idea called America.
Congress-[laughter]-in the forlorn hope
government ownership of stations. And
Today, along with t.
that they will do it exactly my way some-
most of all, we reject censorship. You see,
image: images project
day. [Laughter] But nevertheless, I'm glad
the freedom that this association enjoys-
and evoked by the
they're here.
probably takes for granted-is a model for
while Western democ
It is my privilege this morning to be back
the world.
knowledge broadened
before America's family of broadcasters, the
In my State of the Union Address, I spoke
racy and knowledge I
National Association of Broadcasters. And I
of the cornerstones of a free society: democ-
munist regimes that
can't help but marvel at these huge screens
racy, private investment, competitiveness,
continents. For these
as I walked in here. You know, if I were as
stewardship. We will see what competitive-
something to be twis
large as my image-[laughter]-on these
ness means just this afternoon; I'm going
the brutal hands of a
screens, imagine how easy it would be for
out to visit a General Electric plant in Cin-
beyond recognition. T
me to get my way with the Congress.
cinnati, where free workers transformed
dera calls this time th
[Laughter] And this convention is also dis-
foreign investment into foreign business.
ting," when whole n
played, I'm told, on monitors throughout
Tomorrow I'm going to Indianapolis, help
their heroic histories
the arena, and from here, beamed around
promote stewardship, where the city works
From Havana to Prag
the world. I will try to finish each sentence
with citizens to cultivate an urban forest.
the peoples of these li
without a preposition. [Laughter]
But these are not what you'd call isolated
in to the amnesia, E
504
Apr. 30 / Administration of George Bush, 1990
that you get out of math and spelling.
as a sign to the emerging democracies in
economies, reclair
[Laughter] And I know it won't be easy to
Eastern Europe and in this hemisphere that
long denied. Eve:
understand all the things we're talking
free trade is the way of the future.
Panama City, the
about this morning, but there's one thing
Second, let me just say a word about
start in the diffic
that I'm sure you can understand: You're
Japan. All of you know that I did not name
building.
here because you're important, because
Japan a priority country under the Super
It's that challen
when you grow up you might just run your
301 provisions of the 1988 Trade Act. That
you about today,
own business, like the people here. Or
does not mean that all of our problems with
can engage every
maybe you'll even run for President of the
Japan have disappeared. We know that we
you and the instit
United States. It may be hard to believe,
could sell more American products if
proof of the pow
but I was once a second-grader just like you
Japan's market were truly open. But we've
Democracy prospe
are now. [Laughter] So, today I want to
been working hard on that, and I. think
firm foundation 0.
challenge all of you to keep working hard
with impressive results. Over the past few
about that. What it
in school. Do your very best, and don't be
months, we've made more progress on
chief aims of our
afraid to reach for your dreams.
trade issues with Japan than at any other
involve the private
And I want to challenge the Chamber of
time I can recall. And part of the reason for
ty, in the business
Commerce as well-that's all the rest of you
this success, if you will, is that the Prime
That's not to say
who are past the second grade out there.
Minister, Prime Minister Kaifu of Japan,
government to do
[Laughter] All of you know that the Gover-
shares our commitment to ensuring that
ment aid is essenti
nors and I have agreed on a set of national
trade strengthens rather than undermines
days of democracy
education goals, goals we must meet by the
the friendship between our nations. Now,
free government ar
year 2000, the year these second-graders
we are going to continue to press for
here graduate. And I'm delighted at all the
That's why we p
progress. And keep in mind, section 301
for Poland and Ht
Chamber of Commerce is doing to advance
and other trade law authorities remain
continue to urge
this great cause of excellence in education,
available to the President, and we will use
Nicaragua and Pan:
but today I challenge you to get involved in
all the tools at our disposal to open markets
lation to final passa
every school and community across Amer-
and ensure fair treatment for American
is embarrassing. T.
ica. Help us make that classroom a place
dent Endara of I
where miracles happen.
products, services, American investments
and ideas. I'm confident in Carla Hills, our
Senate and the Ho
And before I go any further, I want to
thank the chamber for its support on an
very able and tenacious Trade Representa-
islation over a mon
issue essential to our nation's economic
tive. I'm confident in her ability, and I'm
done it. I call on t
confident we will achieve lasting results.
action in the Sena
future. Last week I sent to the Congress a
three-point plan for budget reform: one,
John Clendenin mentioned in his speech
fledgling democrac
supporting the Legislative Line-Item Veto
the whirlwind of the changes we've seen
ragua.
Act; two, proposing an amendment to the
this past year. And last year I spoke to you
It is frustrating to
Constitution to provide a Presidential line-
on May 1, May Day, by tradition one of the
ing its work. Here'
item veto; and three, a balanced budget
great days of celebration in the Socialist
lation, I called for
amendment. The chamber, together with
world. I said then that even the Socialist
exact, and asked tl
other organizations in the Coalition for
world was coming to see that socialism
5th. In the House,
Fiscal Responsibility, has been out there on
wasn't just another economic system: it was
discretionary sper
the front lines of the battle for budget
the death of economics. And that much was
Senate added anot
reform; and I ask you now to push hard for
clear. What none of us could have seen on
and, in committee
this three-point plan. The time has come to
the eve of May Day 1989 was how close we
abortion provision.
put our fiscal house in order.
had come to the wholesale collapse of com-
can people get so
And let me say a few words about my
munism.
the Congress or
administration's trade strategy. First, suc-
First in Poland, then across Eastern
Panama quite sim)
cess in the Uruguay round trade talks is my
Europe-one nation after another broke the
got to deliver, anc
top trade priority. The GATT [General
stranglehold of the state and embraced de-
when democracy is
Agreement on Tariffs and Trade] needs
mocracy. And here in our own hemisphere,
extends a helping }
strengthening. It doesn't cover services, in-
in Panama and Nicaragua, the day of the
But as I've said
vestment, or intellectual property rights. Its
dictator gave way to the decade of democ-
aid alone is simply
rules on agricultural trade are far too weak,
racy. These transforming events brought
than a matter of fir
creating counterproductive pressures to
freedom to tens of millions of people, and
matter of principle
subsidize farm exports. And we've got to
with that freedom, new challenges digging
we talk about bi
strengthen GATT as a matter of principle:
out from under the wreckage of ruined
simple truth is tl
674
July 2 / Administration of George Bush, 1990
ment on these items, we're going to talk to
Q. Are the allies in agreement with you
commitments for
our allies. That's the way I've tried to do it
in the responses that you've gotten to your
when implement
from the very beginning with NATO, and
proposals?
economies of both
I'm going to continue that. We don't dic-
The President. Well, as I say, Jim's going
a better life for t}
tate; we just say, Here's our views, and then
over. We've gotten broad general agree-
peoples and a he:
represent them as best we can.
ment on a lot of issues, but there's still some
ship. The progress
Q. But your views seem to represent a
change.
work to be done. That's one of the things
4 months in the :
we're talking about in here today.
trade discussions
The President. Well, we'll wait until we
tion for our ovel
see what comes out of the NATO meeting;
President Gorbachev of the Soviet Union
cannot become C
we're not going to prejudge it. But I'm en-
Q. Have you had any contact with Mr.
come; we must er
couraged because I think we've got a good
Gorbachev going into his party congress?
continues to rest
position here. You know, the other day
The President. No, I haven't talked to
The President
Marlin [Marlin Fitzwater, Press Secretary to
him since he was over here-or been in
emphasized that t
the President] bawled me out. I said there's
telegraphic. Now, maybe Jim has with Mr.
United States and
nothing earthshaking about all of this.
Shevardnadze [Soviet Foreign Minister].
world's greatest t
[Laughter] But he and Scowcroft [Brent
Secretary Baker. Not since-
their full energy t.
Scowcroft, Assistant to the President for Na-
Q. What are the keys to watch for in
an open world tra
tional Security Affairs] went into a frenzy,
terms of that congress? What are your ex-
cessful completior
saying, Well, maybe others will interpret it
pectations?
this year.
as this. So, I don't want to understate where
The President. Stay tuned to CNN [Cable
The President 1
we're going or overstate it, but some will
News Network]. [Laughter] We've got to go
brief the Prime N
look at it as this major change in direction
to work.
the NATO sum:
and others won't. But I want to take this
London. The Prim
opportunity to get myself off the hook.
Q. Have you had any responses from the
Note: The exchange began at 8:45 a.m. at
dent reaffirmed in
allies here?
the President's home at Walker's Point.
ry year of the sec
ing importance of
The President. Oh, sure. That's one of the
stability in Asia.
things I want to hear about from Secretary
Japan and the
Baker [Secretary of State James A. Baker
continue to promo
III] today. They've been in close contact.
Statement by Press Secretary Fitzwater
eration in this era
And he'll go off and-what, tonight do you
on the President's Meeting With Prime
eration with our
head off?
Minister Toshiki Kaifu of Japan Prior
The President WE
Secretary Baker. Tomorrow morning.
to the Houston Economic Summit
Japan's growing is
The President. Tomorrow morning, and
July 7, 1990
denced by the cor
iron out some of the differences before we
support of politica
get there.
President Bush and Prime Minister Kaifu
in Eastern Euro
Q. Do you expect policy changes to be
have just finished 2 hours of wide-ranging
America, and
made at the summit?
discussions on our bilateral relationship and
among Japan, the
The President. Well, what I expect is a
the global partnership of international coop-
summit partners
document that is unanimously agreed to
eration between our two countries. The two
goals will form a c
that will set the course for the future. And
leaders have a very warm, personal rela-
be held during th
as conditions have changed, NATO will
tionship, calling each other by first names.
manifestation of t
change. And I've addressed myself to that.
They agreed that the state of U.S.-Japan
leaders committe
But some will call it dramatic policy
relations today is excellent and that both
meeting in Palm S
changes, and others won't. And so, I don't
countries need to continue to work togeth-
The President
want to understate it. I don't want to be in
er in a spirit of cooperation to strengthen
discussed the issu
trouble saying, Well, you said there would
their bilateral relationship and support de-
They had useful
be no changes. But there will be some
mocracy, freedom, and economic liberty
agreed to continu
changes, but I don't happen to believe that
around the world.
the other summit ]
it's of a bombshell dimension. Remember
The President took this opportunity to
Finally, the Pres
the last time we went over there we had a
thank the Prime Minister for his outstand-
ister, looking back
troop policy change. And so, I don't want to
ing leadership, which contributed so much
governments have
mislead you, but there will be some very
to achieving an excellent joint report in our
at the Palm Spri
interesting developments out of it.
Structural Impediments Initiative (SII). The
agreed to continu
1056
Administration of George Bush, 1990 / July 8
greement with you
commitments for reform in this report,
kind of economic, security, and political re-
i've gotten to your
when implemented, will strengthen the
lationship between our two countries that
economies of both our countries and lead to
will be appropriate to our two great nations
S I say, Jim's going
a better life for the Japanese and American
in this dramatically changing world.
ad general agree-
peoples and a healthier economic relation-
at there's still some
ship. The progress we have made these past
Note: The President met with the Prime
one of the things
4 months in the SII process and our other
Minister at approximately 11:30 a.m. at the
re today.
trade discussions has laid a firmer founda-
Houstonian Hotel's Manor House in Hous-
tion for our overall relationship. But we
ton, TX. Later, the two leaders were joined
the Soviet Union
cannot become complacent in the days to
by U.S. and Japanese officials and partici-
contact with Mr.
come; we must ensure that our relationship
pated in a working luncheon.
is party congress?
continues to rest on a solid economic base.
haven't talked to
The President and the Prime Minister
here-or been in
emphasized that the time has come for the
Jim has with Mr.
United States and Japan, as two of the
reign Minister].
world's greatest trading nations, to devote
Remarks Announcing Canada-United
their full energy to securing the benefits of
States Air Quality Negotiations and an
nce-
S to watch for in
an open world trading system through suc-
Exchange With Reporters in Houston,
cessful completion of the Uruguay round
Texas
What are your ex-
this year.
July 8, 1990
ied to CNN [Cable
The President took this opportunity to
er] We've got to go
brief the Prime Minister on the results of
The President. Well, we're here to com-
the NATO summit just concluded in
ment on the acid rain agreement. The joint
London. The Prime Minister and the Presi-
statement that we're issuing today on be-
in at 8:45 a.m. at
dent reaffirmed in this, the 30th anniversa-
ginning negotiations is long overdue. I
Jalker's Point.
ry year of the security treaty, the continu-
know that this is very important for the
ing importance of the alliance to peace and
Canadian side; and I want to say to you, sir,
stability in Asia.
I appreciate your patience and understand-
Japan and the United States agreed to
ing.
continue to promote important global coop-
Both Houses now in the United States
retary Fitzwater
eration in this era of great change, in coop-
Congress have passed clean air bills, similar
ting With Prime
eration with our other summit partners.
to mine, by huge margins; and the House-
of Japan Prior
The President welcomed and encouraged
Senate conference will begin this week.
nic Summit
Japan's growing international role, as evi-
And I think it will be of enormous benefit
denced by the contributions it is making in
to both our countries. Bill Reilly, the head
support of political and economic freedom
of the EPA [Environmental Protection
me Minister Kaifu
in Eastern Europe, Central and South
Agency], plans to be in Ottawa on July 16th
'S of wide-ranging
America, and elsewhere. Cooperation
and will be prepared to open preliminary
il relationship and
among Japan, the United States, and their
discussions. We should be able to begin
nternational coop-
summit partners in support of common
formal negotiations shortly after that.
countries. The two
goals will form a central part of the talks to
And we've made great progress. And I
m, personal rela-
be held during the next few days and is a
think we ought to both be very pleased
er by first names.
manifestation of the trialog to which both
about that. Great progress has been made,
tate of U.S.-Japan
leaders committed themselves at their
but we still have a long way to go. We
nt and that both
meeting in Palm Springs.
recognize that. And I pledge to my Canadi-
e to work togeth-
The President and the Prime Minister
an friends that we want to do our part, and
ion to strengthen
discussed the issue of lending to China.
I think this clean air legislation-that I hope
and support de-
They had useful talks on this matter and
I'll be able to sign soon-is but one manifes-
economic liberty
agreed to continue these discussions with
tation of that.
the other summit leaders.
Welcome to Houston, sir. And the floor is
is opportunity to
Finally, the President and the Prime Min-
yours.
for his outstand-
ister, looking back at the progress our two
Prime Minister Mulroney. Thank you,
tributed so much
governments have made toward the goals
Mr. President.
oint report in our
at the Palm Springs summit last March,
I'm pleased to confirm that the President
itiative (SII). The
agreed to continue to work to build the
and I have agreed to begin negotiations for
1057
ASIA
thought that the communists will try to keep
moan the lack of public ethics.
their power by buying up state-owned
It has also given him an excuse to pro-
shops and factories. The communists have a
long the extraordinary session of the Diet
Roger's daughter
problem, however, since they can no longer
(parliament) due to start on August 5th. Mr
use state funds for party purposes.
Kaifu wants a debate on two pieces of legis-
FROM OUR WELLINGTON CORRESPONDENT
Their salvation could come from neigh-
lation on which he has pinned his hopes for
bouring China, fearful of both democracy
re-election. One would reform the electoral
W
HEN Sir Roger Douglas, New
and of the possibility of Buddhist activity
system to reduce campaign costs (and thus
Zealand's then minister of fi-
spreading from Mongolia to Tibet. Cer-
the reliance on illicit backhanders); the
nance, was sacked from the cabinet
tainly China has influence. The coalition
other would allow Japanese troops to be
in 1988, it seemed to some the end of
government has demanded that Mongolia's
sent abroad in peacekeeping and disaster-
New Zealand's brave experiment in
Buddhists withdraw an invitation for a visit
relief roles. The opposition parties say the
economic reform. The Labour Party
by the Dalai Lama. Otherwise, China ap-
session should last no more than 30 days.
was roundly defeated in last year's
parently threatened, landlocked Mongolia
Mr Kaifu wants it to run for 60. That way he
general election. Conventional wis-
might find its access blocked to the Chinese
will not spend the period before the LDP'S
dom said that Sir Roger had gone too
port of Tianjin.
leadership election in October looking like
far, too fast. On July 30th conven-
That threat to trade must be taken seri-
a lame duck, too wounded to secure the
tional wisdom was confounded by
ously. Unemployment is rising; power cuts
party chairmanship (and the prime
the budget of Ruth Richardson, fi-
are frequent; and, in a country where live-
ministership that goes with it).
nance minister in the new National
stock outnumber people by ten to one, peo-
Meanwhile, Mr Kaifu is keen to discom-
Party government.
ple queue for three hours to buy their meat
fit his rivals, notably the finance minister,
Miss Richardson has tackled
rations. No wonder in a survey in the Mon-
Ryutaro Hashimoto. As a member of the
those parts of the economy that Sir
gol Messenger only 30% of those questioned
LDP'S largest faction, the popular Mr
Roger could not reach. The country's
had confidence in their government.
Hashimoto could be a dangerous candidate
health service will no longer provide
How long will they and other Mongo-
in late October. Last week, however, he was
"free" care to all. From next February
lians put up with economic hardship and
almost persuaded to fall on his sword as the
the richest 45% of the population will
inexperienced democrats? As if to pre-empt
man ultimately responsible for the blind-
have to meet the cost of doctors' visits,
an awkward answer, America's secretary of
and part of their prescription charges
state, James Baker, flew in to Ulan Bator on
and hospital fees. University and col-
July 25th promising aid worth up to $25m.
lege students from well-off families
Two days earlier he had appealed to rich
will be dependent on their parents
Asians to help Mongolia: its changes, he
until they are 25 (not, as before, 20).
said, were "truly democratic".
The old suffer too. The National
ROSES
Party had promised to remove the in-
come test on the old-age pension.
Japan
Miss Richardson complied, only to
impose a new test that is in some
Clean politics?
ways stricter. To add insult to injury,
the pension level is held until 1993
and the age of eligibility will be grad-
FROM OUR TOKYO CORRESPONDENT
ually raised from 60 to 65 years.
UST occasionally, it pays to be boringly
All this has overshadowed the
above suspicion in scandal-plagued Ja-
structural changes to the welfare sys-
pan. Two years ago the Liberal Demo-
tem. The 70,000-odd state-owned
cratic Party (LDP) plucked the poor but hon-
houses will be sold to a company,
est Toshiki Kaifu from obscurity to make
eyed supervision of the securities industry.
owned by the state but run on com-
him prime minister. That was in the wake of
To embarrass Mr Hashimoto further,
mercial lines. They could well be sold
the Recruit shares-for-favours scandal that
Mr Kaifu has been calling for a watchdog
off. Private and public providers of
forced the then prime minister, Noboru
body, like America's Securities and Ex-
health services will compete for
Takeshita, to resign-followed by a sex scan-
change Commission, to stamp out practices
funds. Patients will be able to opt out
dal that sent his replacement, Sosuke Uno,
such as compensating big clients for their
of the state system, taking their enti-
packing as well. Now Mr Kaifu's hopes of a
losses at small investors' (not to mention the
tlement with them. In education,
second term-unthinkable a few months
taxpayers') expense or helping gangsters cor-
state schools will be able to receive
ago-have risen smartly thanks to the new
ner blocks of shares. Mr Hashimoto knows
lump-sums for their expenses and
scandals of Japan's stockbroking world.
his officials could never countenance such
buy the services they want.
Mr Kaifu has been cashing in on the mis-
an authority outside their control, and so he
These changes are extraordinary.
fortunes of Japan's "Big Four" brokerage
has to defend the very officials who con-
Yet most New Zealanders assume
houses (Nomura, Daiwa, Nikko and
doned the hanky-panky inside Nomura
they are inevitable and react apatheti-
Yamaichi). The four have been forced to
and other securities houses in the first place.
cally. The test will be whether the gov-
publish lists of the big clients they reim-
The one thing still missing is a political
ernment can show a stronger econ-
bursed (at the taxpayers' expense) for losses
connection to the stockbroking scandal.
omy by the next general election at
after the stockmarket crashes of 1988 and
Uncharitable folk in Tokyo suspect more
the end of 1993. The signs are that the
1990. Now 13 middle-ranking stockbroking
names have yet to emerge. Who, they ask,
economy is stirring from its long stag-
firms have handed over their lists of fa-
could be so important that big brokers feel
nation. Voters with jobs, money in
voured clients as well, ensuring that the she-
compelled to cover their investment losses?
their pockets and cheaper loans may
nanigans remain on the front pages for a
The answer would seem to be gangsters and
conceivably forget the death of a wel-
month or so more. All this gives the reform-
politicians-but not Mr Kaifu.
fare system that cosseted two genera-
ing Mr Kaifu a timely opportunity to be-
tions from cradle to grave.
34
THE ECONOMIST AUGUST 3RD 1991
ASIA
head of a Hong Kong-based company called
one believes their motivation is political: on
Tian An China that has a large and success-
been no hint. Nor, say most observers, will
its business merits, Tian An is a star.
there be any: the approvals are handed out
ful property-development business in
Does it matter? After the Asian Wall
by provincial and local officials, most of
Guangdong and other parts of southern
Street Journal ran a front-page story on the
China. They are convinced that Mr Chow
whom (in Guangdong anyway) do their ut-
subject this week, Tian An's share price
helped Xu Jiatun, a former head of China's
most to differ from the line taken in Beijing.
barely flickered and there was no unusual
Xinhua press agency in Hong Kong (which
This happens with purely political mat-
trading volume. But, says Mr Chow, the ru-
serves as its informal embassy in the col-
ters as well. Guangdong, comfortably dis-
mour about China's displeasure has been
ony), escape to America last year.
tant from the dour autocrats in Beijing, has
current in Hong Kong for three months;
To widespread disbelief, Mr Chow
long been the most relaxed part of China. It
over that period Tian An's shares "should
firmly denies this charge; but he also says
is by no means free, but a study by John
have performed better."
that three Chinese government outfits (in-
Kamm, a Hong Kong-based American busi-
The real danger signal would be trouble
cluding the Hong Kong branch of Xinhua)
nessman, shows that the clampdown in
on Tian An's part in getting the government
want to sell their 10% stake in the unlisted
Guangdong after the Tiananmen Square
approvals that are vital for its developments
parent company of Tian An China. Every-
killings of June 1989 was far less severe than
in China. Of that, says Mr Chow, there has
that imposed elsewhere in China: fewer dis-
sidents arrested, none executed. Christian
Let's make a new start
churches are tolerated in Guangdong, for-
eign radio broadcasts unjammed.
Guangdong's ability to protect its people
T
HAT contentious couple the Koreas
from Beijing is usually credited to Ye
have never really stopping loving
Xuanping, who was governor of the prov-
one another. Their well-wishers are con-
ince until he was kicked upstairs to a job in
vinced that the separation imposed on
Beijing this spring. The well-connected Mr
them in 1945 must be coming to an end.
Ye (his father was a famous army marshal
Such, anyway, was the feeling this week
and a close comrade of Deng Xiaoping) has
when applications by the South and the
refused to stay upstairs. He had his choice of
North to join the United Nations came
successors in Guangdong and still spends
before the Security Council. The applica-
most of his time there, making public ap-
tions, due to be heard on August 8th,
pearances often enough to reassure every-
were expected to be approved without
one that he is looking after their interests.
dissent. In September the North (which
In private, Guangdong officials profess
got its application in first) should be-
eagerness for more political contacts with
come the 160th nation to join the UN,
Hong Kong. Delegations of civil servants (50
and the South the 161st.
or so from the Hong Kong side so far this
What then? It may be some time be-
year, 30 from Guangdong) ferry between
fore Koreans care to don the blue berets
these Cantonese cousins. Beijing restricts
of UN peacekeeping forces: they are still
political contacts to the extent it can. Hong
See you at the UN
formally at war with each other. Neither
Kong should encourage them: given that it
bluod
will the international buzz of the UN in
has to go back to China, it should nestle as
to be making a nuclear weapon. Neither
New York be a particular lure: both
country allows its citizens to have free
far as possible under Guangdong's wing.
countries are already installed there as
contact with each other. This week a
observers, although they are not allowed
young South Korean who flew to the
to vote. Their membership of the world
Japan
North via Berlin faced arrest if she re-
club mainly means that one more obsta-
turned to the South. Another student
cle to normal diplomatic relations will
Pleasures of
from the South who dared to attend a
have been removed:
youth rally in the North was jailed for six
Hitherto the North had insisted that
years on her return. Clearly the South,
summer
the Koreas join the UN as one country
mindful of the cost of Germany's unifi-
under the North's leadership. It could
cation, is in no particular hurry to em-
FROM OUR TOKYO CORRESPONDENT
count on the Soviet Union or China to
brace the North
veto any move by the South to go it alone.
And yet: last year the two countries'
T
HE new financial scandals to hit Japan
But these days the Russians and the Chi-
prime ministers met for the first time
are likely to prove a particular blessing
nese want to be friendly with the wealthy
for the opposition parties. The session of the
since 1953. Direct trade, with a shipment
and innovative South; they agreed not to
of southern rice (to be exchanged for
Diet that opened on August 5th is going to
use their veto. Rather than be left out, the
northern coal), started on July 27th. A
be so busy tightening up Japan's banking
North made its own application when it
and securities laws that there will be little
North Korean diplomat recently argued
saw the way things were going. Other-
for a "loose confederation" that would
time left for the electoral reform that the op-
wise, the North said, "important issues
position dreads.
tolerate both capitalism and commu-
related to the interests of the entire Ko-
nism. He pointed out that Koreans of
At present opposition parties have an
rean nation would be dealt with in a bi-
easy ride in a number of multi-seat constit-
North and South shared the same cul-
ased manner in the UN rostrum."
ture, the same language. But have they
uencies. Their candidates can get elected to
The begrudging tone reflects the di-
grown apart since 1945? Probably not
the lower house of parliament merely by
vide that still exists between North and
much. For a people that had been uni-
scraping home in third or fourth place.
South. Both countries have large armies.
fied since the seventh century, a few de-
Changes proposed by the prime minister,
The South's is supported by American
cades apart may merely make the heart
Toshiki Kaifu-ostensibly to cleanse the rul-
nuclear weapons. The North is believed
grow fonder.
ing Liberal Democratic Party of its ex-
cesses-would end this cosy practice. All the
multi-seat constituencies would be replaced
22
THE ECONOMIST AUGUST 10TH 1991
ASIA
by single-seat ones. The number of seats in
cial Democratic Party of Japan (formerly the
the lower house would be reduced from 512
Socialists) has got Mr Kaifu to agree to press
to 471. Of these, 300 would go to the winners
for an independent watchdog along the
of first-past-the-post contests, the rest would
lines of the Securities and Exchange Com-
be allocated by proportional representa-
mission in America. The idea is bound to be
tion. The opposition does not relish these
resisted by the finance ministry, which tol-
competitive refinements to the democratic
erates no interference from politicians.
process.
Mr Kaifu was lambasted by opposition
One advantage the reforms have for the
leaders after his opening speech on August
Liberal Democrats is that the party's enor-
5th. Koshiro Ishida, chairman of the
mous appetite for cash would be reduced.
Komeito ("clean government party"), criti-
At the moment the party has to put up sev-
cised the prime minister for devoting less
eral candidates in each of the multi-seat
than 10% of his speech to the stockmarket
constituencies, and then provide financial
scandal. The Communist Party's chairman,
backing for dozens of semi-independent
Tetsuzo Wada, complained that Mr Kaifu
candidates whose support it seeks. The cost
was seeking to deal with the stockmarket
to the party averages ¥1 billion ($7.3m) a
scandal too quickly. Makoto Tanabe, the
seat. The cost of a seat to an opposition party
newly elected chairman of the Social Demo-
is reckoned to be less than a twentieth as
crats, demanded that the government and
much; it would be far costlier for it to fight a
the finance minister, Ryutaro Hashimoto,
first-past-the post contest.
should clarify their involvement in the se-
Mr Kaifu sought the 61-day special par-
Will Hashimoto bow out?
curities scandal.
liamentary session that began this week not
But the criticism was merely a warm-up
only for electoral reform but to get approval
ter for another two years.
for what is being prepared for Mr Hash-
for his plan to send Japanese forces abroad
The way things are going, he probably
imoto. None of the opposition parties will
on peacekeeping and disaster-relief mis-
will. But electoral reform may have to wait.
be happy until they have been granted a spe-
sions. Behind Mr Kaifu's determination to
The prime minister may have to be content
cial parliamentary committee to investigate
be seen as a reformer was the not unrelated
with getting just his peacekeeping and di-
any financial wrongdoings, and been given
thought of looking good during the run-up
saster-relief legislation through parliament.
a list of the companies and individuals who
to the party's leadership election in October.
The rest of August and much of September
received kickbacks. What they would dearly
Getting re-elected as party chairman would
is going to be taken up with discussion on
like to see is the names of some prominent
automatically make Mr Kaifu prime minis-
the financial scandals (see page 70). The So-
Liberal Democratic politicians involved in
the securities scandal-just like the Recruit
shares-for-favours affair two years ago. That
Shaking in Shibaura
scandal led to a conquest of the upper house
by the opposition. Rumour has it that some
FROM OUR TOKYO CORRESPONDENT
two dozen Liberal Democrats. have already
been identified by the financial authorities.
T
HE clubs, discos and other noctur-
their handbags, the club earns ¥2m a
The hapless Mr Hashimoto has already
nal dives in Tokyo are mostly small,
month.
had his name linked to a scandal in the
because of astronomic rents, and are
Its clients are not the cool types who
headlines. His personal secretary acted as a
supposed to close at midnight. Juliana's
will soon move on to the next hot spot.
go-between for Fuji Bank as part of a deal
disco, located in a warehouse in the
Rather they are prosperous though not
involving ¥260 billion ($1.9 billion) of alleg-
Shibaura district on Tokyo's waterfront,
particularly trendy yuppies. The success
edly illegal loans. Sooner or later, the oppo-
is large. The police allow it to stay open
of Juliana's shows there are boundless
sition parties are going to be demanding Mr
until four in the morning, at least at
opportunities in Japan to import foreign
Hashimoto's head on a plate. Apart from
weekends. Juliana's has become the
kinds of entertainment adapted to local
anything else, that might postpone discus-
place to be.
tastes. Leisure is a. concept which has
sions on electoral reform.
After a hype-filled opening night in
barely begun to be developed in Japan.
May, 22,000 people came through Juli-
Yet younger people, especially women,
ana's doors in June and spent ¥109m
who are increasingly opting to stay sin-
India
($800,000). In July 25,000 people spent
gle and not be trapped into marriage
¥120m. On its safety-deposit boxes
with a constantly absent salaryman,
One man's law
alone, where Japanese ladies like to leave
want lots of entertainment and are pre-
pared to pay for it. The admission price
at Juliana's is around ¥5,000.
FROM OUR DELHI CORRESPONDENT
Juliana's is a joint venture between
T
WO hours' drive from parliament in
Wembley, one of Britain's largest leisure-
Delhi, Mahendra Singh Tikait runs a
management groups, and Nissho Iwai, a
government of his own. He declares that all
Japanese trading company. It was two
politicians are rogues and all policemen are
years in the planning and cost ¥1.5 bil-
bandits in uniform. In 84 villages surround-
lion ($11m). It has high-tech wizardry,
ing his own of Sisauli, he claims that author-
such as 49 video monitors, which the
ity rests with a group of five village elders. In
Japanese love. With the yen flowing in,
fact, the group is controlled by Mr Tikait.
four more Juliana's are planned during
Thousands of Mr Tikait's supporters
the next two years in Kobe, Osaka, Na-
bear guns. Mr Tikait tells farmers not to pay
goya and Sapporo.
for canal water or electricity for their wells.
No state government has dared cut off the
THE ECONOMIST AUGUST 10TH 1991
23
ASIA
Left to rot in Japan
were started and home-made mortars let
loose. But those pyrotechnics were the cul-
mination of years of preparation for the
death of Emperor Hirohito, and the en-
thronement of his son, Akihito. It was the
swan-song of leftist violence. The tally for
this year's violence is expected to be small.
The collapse of the Soviet Union affects different Asians in different ways. The
next three articles examine the repercussions for Japan, China and India
Few Communists have bothered to keep
in touch with people's changing views.
FROM OUR TOKYO CORRESPONDENT
None has addressed such issues as high land
prices, the exploitation of consumers and
political corruption-the issues of today.
Smash the Enthronement Ceremony
The Japanese Communist Party is clean, a
rare quality in the country's politics, but it
makes the mistake of being self-righteous.
"Hit the Target Tenno Enemy
Revolutionary
Urieasy about the gun-toting Communists
Workers
of China and horrified at the reformers of
the ex-Soviet Union, the party believes that
it alone now carries the true flame of scien-
tific socialism. "We have long held Marx-
ism to be the distillation of all human wis-
dom," says Kenji Miyamoto, the party's
octogenarian leader. "Mikhail Gorbachev
is now trying to overthrow this."
After being transfixed for two weeks fol-
lowing the failed coup in Moscow, the party
has now taken to issuing almost daily state-
ments. It denounces "the great-power chau-
vinism and hegemony" of Soviet Commu-
nists under Stalin, Brezhnev and Gor-
bachev. "We gladly welcome the end of the
party of colossal historical evil," the party's
Central Committee has quaintly an-
nounced. It welcomed the Soviet Union's
recognition of Baltic independence with
the words: "The hegemonist error of Stalin
It turned out to be a swan-song
had not been corrected until now." The Jap-
anese of today, apolitical to a degree
T
BE a Communist in Japan sounds
can victors, faced with the problem of turn-
like a contradiction. Japan's success as
unimagined by their countrymen a genera-
ing Japan into a democracy, encouraged the
tion ago, merely yawn in response.
an economic power is assumed to owe little
Communists: at least they were untainted
Mr Miyamoto has clung more tena-
to Marxism. Yet the Japanese Communist
by Japan's militaristic past.
ciously to power than many a Marxist dicta-
Party has been a considerable force. With its
In the mid-1950s the party abandoned
tor, notes Takuro Suzuki, a political com-
450,000 members, it is the third largest com-
its doctrine of violent revolution: Instead, it
mentator. East Germany's Erich Honecker
munist party in a democratic country, after
would pursue its aims though parliamen-
managed only 18 years as leader. Romania's
Italy's and France's. Until recently it had 26
tary democracy. The hardliners went their
Nicolae Ceausescu lasted for 24 years. Mr
members of parliament. But a has-been it
own way. But hardliners and democrats
looks increasingly like becoming. At the last
Miyamoto has wielded absolute authority
both had a great time in the late 1950s, when
over his party for 31 years. His strict Marxist
general election the Communists lost ten of
they were a driving force in bitter union bat-
orthodoxy and rigid style of management
their 26 parliamentary seats, a catastrophe
tles with big business, and again in the
blamed on the Chinese massacre in Tianan-
have stifled dissent and anchored the party
1960s when anti-Americanism grew over
in the past. The public has reacted accord-
men Square. The disintegration of the So-
the Vietnam war.
ingly. Even party members were embar-
viet Union and the dismantling of its Com-
Now even the ageing bomb-throwers of
rassed by Mr Miyamoto's warm relations
munist party have further rattled the
the far left are losing their enthusiasm for
Japanese comrades. They fear that after the
with Ceausescu and his criticism of the pop-
the fight. Some who have taken refuge
ular uprising against his regime.
next general election they may have no
abroad are pleading to be allowed to come.
Though a stickler for law and order, the
members of parliament at all.
home. Among them are five Japanese who.
Like the Communists of eastern Europe,
party is still watched by the Japanese police.
hijacked an aircraft to North Korea in 1970
the Japanese Communists look back nostal-
They suspect it is the last remaining breed-
and have been there ever since. (Stay there,
gically to their great days after the second
ing-ground for potential radicals. The uni-
says Japan.) The number of violent inci-
world war. Anyone known to be a Commu-
versities have become conservative. Thirty
dents blamed on radicals dropped from 87
nist was jailed during the war. The Ameri-
years ago leftist organisations could count
in 1985 to 27 in 1989. Last year more fires
on four out of five students to join the revo-
THE ECONOMIST SEPTEMBER 14TH 1991
35
ASIA
lution. The largest of the ultra-left groups,
the Chukakuha (Middle Core Faction), used
to do most of its recruiting at Hosei Univer-
sity in Tokyo. A smaller group, the Kaihoha
(Liberation Faction), operated around Meiji
University in Tokyo. In today's prosperous
Japan fewer than one in 10,000 students
gets involved in radical politics.
The ultra-left has fragmented into more
than two dozen squabbling factions. They
spend more time fighting one another than
trying to demolish the pillars of Japanese so-
ciety. A steady four or five murders a year
have occurred among extremists since the
1970s. All the radical factions are believed to
have been infiltrated by informers. The
Chukakuha has been effectively neutralised
since police raids on its hideouts in Kobe
and Tokyo unearthed weapons, records and
cash. The police hold files on some 35,000
extremists, no more than a third of whom
are reckoned to be even remotely active
members praises the decision to put down
these days.
Vietnam's party leader, Do Muoi, and Mr
the Tiananmen demonstration. Chinese
Members of the once-notorious Japa-
Jiang, when normal relations will be re-
Communists, says the document, cannot af-
nese Red Army are in jail, exile or under sur-
stored between the two countries after 12
ford to be weak. Mr Gorbachev is harshly
veillance. The group's leader, Fusako Shig-
years of enmity.
criticised for disbanding the Soviet Com-
enobu, is believed to be hiding in the
But renewed friendship with Vietnam
munist Party, but the leaders of the at-
Middle East. The Japanese police set up an
does not greatly excite China. Nor does its
tempted coup are also blamed for not being
anti-terrorist force in January after the Red
continued ties with that other heartland of
sufficiently steeped in revolutionary tradi-
Army threatened to "block" the country's
hardline communism, North Korea. China
tion. In reassuring tone, it tells China's
plan to send military transport aircraft to
is really rather attracted by the more tangi-
party members that as long as the veterans
help out in the Gulf. Nothing happened.
ble charms of the South. South Korean tele-
of the Long March are in charge, hardline
vision reported that Mr Deng had sent a
communism is safe. The document is as-
message to Seoul calling for full diplomatic
sumed to have the approval of China's se-
China
ties. The South Korean foreign ministry de-
nior leader, Deng Xiaoping.
nied the report, probably under pressure
Power still comes
High-ranking officials have been al-
from China, which wants to avoid giving
lowed to read the document. Others are al-
the impression that diplomatic relations
lowed only to listen, forbidden even to
out of the gun
can be bought with mere money.
make notes lest news of the contents should
slip into the wrong hands. China has scru-
FROM OUR BEIJING CORRESPONDENT
pulously avoided giving an opinion in pub-
India
lic about Mr Gorbachev's death blow to So-
S
UPPOSE there were a revolt against the
viet communism. However, with 50m party
men who run China, and the army re-
Old friends
members privy to the sacred words, it is in-
ex
fused to protect them. The Communist
evitable that they should be freely discussed.
Party chief, Jiang Zemin, addressed this
out of kilter
m
The document offers no hope of political re-
lit
question this week. His answer: the army
form, instead painting a picture of a party
must be told now, firmly, "The party holds
preparing for a long battle with the forces of
FROM OUR DELHI CORRESPONDENT
Ui
the gun."
"peaceful evolution", otherwise known as
Mr Jiang's stern directive, in the People's
democratisation.
T
HROUGHOUT the cold war, the Soviet
pe
Daily of September 11th, appears to reflect
Union was not just India's superpower
ye
An earlier hastily composed document
the party's dismay at the failure of the coup
friend but also its biggest trading partner
de
had praised the Moscow coup. Officials had
th
against Mikhail Gorbachev. Some officers
and supplier of arms. That cosy relationship
quickly to withdraw it when the coup col-
is disintegrating. With the end of the Krem-
ue
in the Soviet army disobeyed orders to open
lapsed. It is rumoured that China was about
fire on opponents of the coup. This, the Chi-
lin's global ambition and the collapse of its
at
to offer military support to the coup leaders.
nese believe, unnerved the coup leaders. No
authority at home, no one in India now
Another rumour, denied by China, is that it
such reluctance was evident in the soldiers
knows whom to talk to in Moscow. Even if
we
has given asylum to some Soviet officials
who killed students demonstrating in
they did, what would they talk about?
qui
who supported the coup attempt.
me
Tiananmen Square in June 1989 in pursuit
The uncertainty is disquieting. India has
Despite giving the appearance of busi-
traditionally seen China and Pakistan as the
a
of democracy. However, it has since become
ness as usual, China's leaders are believed to
known that many in the so-called People's
main threats to its security, and believed
po
be deeply concerned by their isolation. The
that only the old Soviet Union could deter
titi
Liberation Army feel shame at having fired
communist world, after all, seems to be
on Chinese citizens. Some units might have
China from a military adventure on the dis-
tor
shrinking by the day. On September 8th the
refused to do so. Mr Jiang fears that next
puted Indian border. For its part, the Soviet
rou
Vietnamese foreign minister, Nguyen
Union has viewed India as a bulwark
lin
time the soldiers might hold their fire, or
Manh Cam, visited Beijing, journeying
even side with the demonstrators. That is
against Chinese expansion and American
symbolically through Friendship Pass be-
what he is determined to prevent.
domination of South Asia. The two coun-
def
tween the two countries. He put the final
A document circulating among party
tries signed a 20-year treaty in 1971 that fell
has
touches to a forthcoming meeting between
not far short of a military alliance. The treaty
cra
36
rin
THE ECONOMIST SEPTEMBER 14TH 1991
ASIA
The luckiest man in Japan
stay on as prime minister for a while.
Others in the party have been trying des-
perately to prevent that from happening.
The party's three other main cabals-those
headed by Hiroshi Mitsuzuka, Kiichi
Miyazawa and Michio Watanabe-could
FROM OUR TOKYO CORRESPONDENT
together easily out-vote the Takeshita fac-
tion. But to do so would make a fearsome
T
HE ONCE unthinkable is about to hap-
clique headed by Noboru Takeshita. Mr Ta-
enemy of Mr Takeshita and his mentor,
pen in Japan. Toshiki Kaifu, the mildly
keshita had to resign as prime minister after
Shin Kanemaru, the godfather of Japanese
bungling backbencher who was plucked
being implicated, along with other politi-
politics. The bosses of all three factions have
from obscurity two years ago to act as a stop-
cians, in the Recruit shares-for-favours scan-
said they will stand for election in October.
gap prime minister, is almost certain to get a
dal two years ago. By now Mr Takeshita
But only Mr Miyazawa means what he says.
second term. Mr Kaifu's stint as president of
could have expected the public to have
He is due to announce his candidacy imme-
the ruling Liberal Democratic Party-and
pretty well forgotten the scandal, leaving
diately after the Diet session ends next week.
thus prime minister-comes to an end in
him free to reclaim the prime ministership.
Mr Mitsuzuka and Mr Watanabe are not
late October. He looks like being made pres-
But a series of new financial scandals has re-
planning to announce their candidacies
ident for another year. That would put him
minded ordinary folk of the sordid shenani-
until a few days before the election on Octo-
among Japan's longest-serving prime min-
gans going on among the rich and the pow-
ber 27th, and may never do so. Both are be-
isters in recent years.
erful. Mr Takeshita has wisely chosen to
lieved to have done deals with Mr
Few people thought Mr Kaifu would last
keep his head down for a little longer.
Takeshita. In exchange for agreeing to an ex-
even a few months, let alone a two-year
He might have considered putting up a
tension to Mr Kaifu's term, Mr Mitsuzuka
term, before being forced to hand the reins
candidate from his own faction for the top
and Mr Watanabe each want a senior party
of government back to political heavy-
job. However, the two possible candidates
post (that is, secretary-general or executive
weights within the party. He has survived al-
are in trouble. The finance minister,
council boss) and later a top ministerial job.
most entirely by accident, not skill. Because
Ryutaro Hashimoto, is to resign on October
Mr Kaifu, they feel, should be given only
of his bungling, Japan's contribution to the
18th. He will take responsibility for the fi-
one more year in office rather than two-
cost of the Gulf operation by America and
nancial scandals that happened on his
and preferably less than that.
its allies was seen, unfairly, as too little, too
watch. He is also under a cloud because an
In their view, Mr Kaifu should be al-
late. His bill to allow Japanese to go abroad
aide turned out to be a go-between in a
lowed to remain in the prime minister's res-
as part of a United Nations peace-keeping
banking fraud. The Liberal Democrats' for-
idence until next July, when an upper-
corps is stalled in the Diet. Three bills de-
mer secretary-general, Ichiro Ozawa, a bully
house election is due. At present the
signed to clean up Japanese politics are ex-
albeit a clever one, has had'a heart attack.
opposition parties, having done well in the
pected to die when the parliamentary ses-
Neither man can expect to be rehabilitated,
wake of the Recruit scandal, hold the major-
sion ends on October 4th. The legislation to
politically or physically, for several years. So
ity of seats in that house, and have been
deal with Japan's scandal-plagued banks
Mr Takeshita will let the harmless Mr Kaifu
making life difficult for the Liberal Demo-
and stockbrokers is not ex-
pected to be passed.
Yet, despite this catalogue
of failure, Mr Kaifu's popu-
larity has soared. To the pub-
lic, the prime minister is seen
as a typically sincere if
slightly incompetent Japa-
nese salaryman, perpetually
harassed by powerful figures
behind the scene. That is why
the voters have backed him-
and, indirectly, the party.
Thanks to Mr Kaifu, the Lib-
eral Democrats had a popu-
larity rating of 55% in August,
the highest since it was
founded 36 years ago. The
party now has a record 5.4m
members.
Mr Kaifu's luck is the re-
sult of others' misfortune. As
a member of the smallest fac-
tion within the party, he has
been prime minister only on
the say-so of the powerful
Takeshita decides, Kaifu abides
91
THE ECONOMIST SEPTEMBER 28TH 1991
35
ASIA
crats. If Mr Kaifu can win back the upper
house for his party, it is argued, the Liberal
Democrats' problems will be over. Mr Kaifu
Putting pep in her handbag
could then be packed off to the sleepy
FROM A TOKYO CORRESPONDENT
backbenches from where he was plucked,
and the heavyweights will take over.
I
T USED to be only the men in Japan
Before that happens, though, other po-
who needed pepping up. Make-be-
litical dramas have to be played out. Mr
lieve aphrodisiacs were gulped down by
Mitsuzuka and Mr Watanabe are not the
the gallon by optimistic Japanese. These
only ones talking quietly to the Takeshita
days, though, Japan's new generation of
faction. Some of the Miyazawa faction's
career women are proving to be faster on
members have been taking the precaution
their feet than teenagers, freer spending
S
of apologising beforehand to Mr Takeshita
than young married couples, and more
for having to back their leader's bid for the
imaginative than a salaryman. Don't
party leadership. Mr Miyazawa will be 72
they need a tonic too? Of course they do.
next week and this will be his last chance to
Try the pep drink, probably the most
stand for the prime ministership. He too
expensive dose of caffeine in the world.
¥100 billion this year. For many of the
has had to stay away from public office
A small bottle costing ¥300 ($2.25) and
smaller suppliers, selling little fizzy
while memories of the Recruit affair linger.
up contains 50 milligrams of caffeine-
drinks in one-gulp bottles accounts for
Everyone agrees that Mr Miyazawa is
about the same as a cup of coffee. Pricier
more than half their turnover. But with
one of the most talented politicians in Ja-
versions contain dubious additives: gin-
all the large suppliers-Sankyo, Yama-
pan, with a high intelligence, a wealth of ex-
seng, royal jelly, even antelope horn and
nouchi, Otsuka, Takeda, Asahi Chemi-
perience in cabinet and on the interna-
tincture of viper, plus a harmless dollop
cal-well entrenched, any new entrant
tional stage, and, usefully, fluent English.
of vitamins. The dedicated career
has to search for a niche of its own.
But he lacks the common touch, and has lit-
woman will cheerfully pay ¥3,000 a swig
Women have provided it. One tonic in-
tle support outside his own faction. Close
for the experience. Her husband, no
cludes an ingredient said to improve the
friends suspect that Mr Miyazawa will suf-
doubt disappointed by aphrodisiacs,
skin. Another contains nutrients said to
fer a humiliating defeat in the party's presi-
may do the same. Hardened pepoholics
ward off anorexia.
dential race in October. Afterwards, the
gulp a bottle at breakfast, another after
What next after this market is satu-
leadership of his faction may pass to a youn-
lunch, and a third before hitting the bars
rated? A small Osaka firm, Sanko Phar-
ger man. Perhaps some members will defect
in the evening.
maceutical, thinks it has the answer. For
to the Takeshita camp. Mr Miyazawa knows
The market for tonic drinks for both
¥200 it is offering little bottles of
all this and more, but he has to try for the
men and women has been growing since
Wanbitan-a tonic said to make the fam-
sake of his faction's morale as well as his
the mid-1980s. It is expected to reach
ily dog wag its tail off with joy.
own ambition.
Another little drama concerns the length
of a prime minister's term of office. Two
Lanka that had been cleared of Tiger guerril-
come. Mr Premadasa now wanted to negoti-
weeks ago a Liberal Democratic committee
las by the Indians, and generally to protect
ate with the Tigers, not to fight them. To get
started discussing the idea of extending the
all peaceable Tamils. The Sri Lankan gov-
the Tigers to the negotiating table, he or-
president's term from two years to three.
ernment, under President Ranasinghe
dered the Sri Lankan army to assist the Ti-
The ostensible reason being given for this
Premadasa, had, it seems, other ideas.
gers against the Tamil National Army, and
previously unheard-of proposal is that two
Although the Indians had been invited
to provide the Tigers with arms. Little has
years is simply too short compared with the
to Sri Lanka to fight the Tigers, they had, in
been heard of the Tamil National Army
24
four years or more enjoyed by leaders of
the government's view, outstayed their wel-
since. It is assumed that many of its mem-
other industrial countries. A more realistic
co
reason is that Mr Takeshita and the other
ageing bigwigs who will be taking over after
Mr Kaifu has served his purpose are deter-
mined to remain in office for as long as pos-
sible before having to hand over to a new
M
generation of leaders. Mr Kaifu, though, is
probably going to get only one more year,
and should count himself lucky to get that.
Sri Lanka
in
Our allies,
liai
the Tigers
lege
and
W
HEN the Indian army sailed away
me
from Sri Lanka in 1990, it left behind
ble
a local defence force. This force, called the
list
Tamil National Army, had been recruited,
mo
armed and trained by the Indians. Its job
be
was to hold the areas in north-eastern Sri
Indians train the doomed Tamil National Army
36
THE ECONOMIST SEPTEMBER 28TH 1991
THE NEW YORK TIMES MEDICAL SCIENCE TUESDAY, FEBRUARY 18, 1992
C3
THE DOCTOR'S WORLD
Every Time Bush Says
Bush's electrocardiogram showed no
confusion follows. However, the
evidence of such an attack.
White House has been criticized for,
"Most doctors feel I should have
adding to the confusion by not issuing.
brought him to a hospital, or should
a statement from Dr. Lee or having.
'Ah,' Second-Guessers
have done this or that," Dr. Lee said.
him answer questions about Mr.
But to him, the diagnosis was a
Bush's condition.
straightforward case of gastroenteri-
Dr. Lee acknowledged the confu-
tis, or intestinal flu, striking Mr. Bush
sion, but said he did not issue a state-
Of His Doctor Cry Aha!'
after hitting others in the Bush entou-
ment or speak to reporters because*
rage. "I had been living with Presi-
"it wasn't a major thing."
"If something bad is going to hap-
pen, I am going to be obviously out
handling various medical problems.
there," he said. "I saw no need to"
By LAWRENCE K. ALTMAN, M.D.
Most comments reflect sincere ef-
forts to help, but some come from
Practicing
hype it, make a big deal out of it. It.
was just unfortunate that the guy got:
WASHINGTON
those out to gain fame or fortune by
sick on camera.
NY time a President is ill, his
consulting in some way on a Presi-
medicine in a
Despite confidence in the diagnosis,
A
doctor in the White House is
dent's case.
barraged with unsolicited
In the White House, Dr. Lee heads a
fishbowl: the
Dr. Lee and other White House offi-:
cials on the scene in Japan may not.
advice and criticism, mak-
staff of doctors, nurses and physi-
ing him the most second-guessed doc-
cian's assistants who look after the
White House.
have appreciated the degree of anxi--
ety that Mr. Bush's collapse created,
tor in the world.
Bush family, the Quayles and other
in the United States. It is a case;
President Bush's personal doctor,
White House personnel. The Presi-
where not providing sufficient infor-
Burton J. Lee 3d, knows the phenome-
dent has a doctor nearby around the
dent Bush for 12 days," he said. "I
mation and communicating to the
non well. In news reports and in an
clock. "We disagree very seldom,
avalanche of mail to his office in the
about the same as any other bunch of
know when he is having a serious
public in a timely way raised unnec-
White House, Dr. Lee has been at-
doctors," Dr. Lee said.
problem and not having one."
essary second-guessing and specula-
tion about a President's health.
tacked for prescribing the sleeping
pill Halcion for Mr. Bush. Dr. Lee was
Dr. Lee is well aware why White
Last May, Mr. Bush spent nearly
three days in a hospital because of an
As a doctor working at the heart of
also criticized for the way he handled
House doctors are watched closely,
erratic heart beat and an overactive
the Washington establishment, Dr.
Mr. Bush's collapse at a state dinner
particularly in an election year. Some
thyroid. Dr. Lee was criticized for not
Lee has an unusual vantage point on
in Japan last month. And last year he
have played important roles in Amer-
having detected the thyroid disorder
the debate over health care, and on
was harshly criticized for not order-
ican history by concealing serious
within the first hours of the Presi-
this issue, at least, it is he who second-
ing a thyroid test as part of Mr.
Presidential illnesses and helping to
dent's hospitalization or in the annual
guesses other doctors.
Bush's annual checkup that might
manipulate elections.
checkup'a few weeks earlier.
His medicine is easy to prescribe-
have detected Graves' disease before
On occasion, Presidents have re-
it caused an erratic heart beat.
ceived questionable medical care.
"We were second-guessed instantly
but difficult to take: doctors should
on every single thing we did in han-
stop bickering and start developing
Many doctors would cringe from
dling his Graves' disease, and by ex-
plans that they could present to Con-
attacks on their-skills. But Dr. Lee
perts at the big medical schools, none
gressional and White House leaders,
does not shy from controversy. In
of whom were on the scene," Dr. Lee.
he said.
fact, he closely follows reports of the
What rankles Bush's
President's health through newspa-
said. "Now, doctors ought to know
"There are a lot of people of good
pers, television and news briefs that
physician the most is
better than that."
will around Washington who are as
Such criticism "is a risky business
frustrated" by the health care sys-
are sent to his office several times a
for even the most expert" armchair
tem as most doctors are, he said:
day. He said he reads every letter he
the dispute over a
medical observers because they have
"They would love to start bartering
gets and stashes the interesting ones
not examined the President, do not
with the medical profession, but SO
in his desk.
Halcion prescription.
know the full test results, and do not
far they have not had anyone to bar--
Nevertheless, there are signs that
have the intimate knowledge of a
ter with except for a bunch of doctors
some comments strike a raw nerve.
who come around complaining.'
Although he is a graduate of the
patient that comes from day-to-day
When President Eisenhower suffered
contact, Dr. Lee said.
Dr. Lee said medical colleges and
Columbia University medical school
a heart attack at night in Denver in
But in the wake of the thyroid con-
medical centers should unite with the
and practiced for 30 years, specializ-
1955, Dr. Howard Snyder told the
troversy, Dr. Lee said he has asked
American Medical Association to de-
ing in lymphomas, at Memorial
President's wife, Mamie, to get back
experts for a list of tests that they
velop new plans.
Sloan-Kettering Cancer Center in
in bed with her husband to keep him
believe should be performed on a
For example, he urged that physi-
New York City, he said: "Doctors
warm and delayed sending Mr. Ei-
George Tames for The New York Times
healthy 67 -year-old. Although Dr. Lee
clan assistants and nurse practitio-
from all over the country write and
senhower to a hospital for the better
Dr. Burton J. Lee 3d, President Bush's doctor, in his White House
has long been critical of doctors who
ners be trained to perform some:-
tell me things: You may not be aware
part of a day.
office, where he receives an avalanche of mail from others doctors.
order too many costly medical tests,
tasks now done by doctors. He said"
that aspirin can give you intestinal
Dr. Max Jacobson, a New York
the physician assistants and nurses,
bleeding. You may not be aware that
advising him on the President's health He says he answers it all politely.
he said he would include some sug-
doctor, gave President Kennedy
gestions in Mr. Bush's next checkup
who work in the White House "pick up.
there are side effects of this, that and
mind-affecting amphetamine injec-
the other drug. Where the hell do they
in several weeks, though he did not
physician errors all the time.'
tions before a summit meeting.
identify them.
The most difficult aspect of re-
think I went to medical school? But I
Of all the criticism, it is the pre-
taken half a Halcion pill the night
"I could see it coming 40 seconds
forming health care, Dr. Lee said, is
write very polite letters back to ev-
scriptions of the controversial sleep-
before because of difficulty sleeping.
before it happened, he said. "I saw
Some comments are Instructive in
to persuade doctors "to look at it-
erybody and say, yes I am aware of
ing pill Halcion for Mr. Bush that
Last week Dr. Lee refused to dis-
these things."
his face go absolutely dead white. He
other ways. Last week he said he
from the point of view of the patient.
seems to rankle Dr: Lee most. Al-
Although they usually resent criti-
cuss the discrepancy, calling Halcion
looked like a curtain coming down! I
"It bothers me to see doctors driv-)
learned of a syndrome, described
though Dr. Lee insists he was correct
a closed issue.
cism of their medical decisions, doc-
was out of my chair and trying to get
about a decade ago, including left-
ing around in expensive Mercedes-
in prescribing Halcion, he has said he
to him before he went, but I did not
handedness, autoimmune disorders
Benzes," he said. "It is not that they.
tors are well known for second-guess-
will try to avoid it for public relations,
Even the President himself can
get there in time."
and certain other problems. The
don't deserve them, or they should
ing another's work, even if they have
not medical, reasons.
second-guess his doctor. For exam-
no firsthand knowledge of a case.
Dr. Lee arrived just after Mr. Bush
President, who is left-handed, has
not have them, but can't they under-
Dr. Lee has repeatedly said Hal-
ple, Mr. Bush disregarded Dr. Lee's
hit the floor.
been treated for Graves' disease, an
stand that every person who sees,
The second-guessing of a Presi-
cion had nothing to do with Mr.
advice to skip Prime Minister Kiichi
Because Mr. Bush fainted while
dent's care comes in a variety of
autoimmune disorder. Some people
them drive knows that every cent
Bush's collapse at the dinner. Dr. Lee
Miyazawa's dinner after he became
seated, which is unusual, some lead-
with the syndrome are dyslexic and
paid for the Mercedes came out of
forms, from leading professors to
said earlier this month that Mr. Bush
people who have suffered similar con-
ill and had to leave the receiving line
ing doctors have speculated that he
Dr. Lee speculated that Mr. Bush's
somebody's pocket who was sick."
had not taken a Halcion for at least a
before the event.
ditions. Doctors not connected with a
collapsed from a transient episode of
well-known problems with syntax
week before he collapsed. But one
President's case freely offer analyses
Expecting a medical problem, Dr.
a Stokes-Adams attack, in which the
might be linked somehow to the other
reporter, John Cochran of NBC News,
of his ailments, and they write to the
Lee said he briefed key aides about
heart beats extremely slowly, about
conditions.
said the President remarked a few
The New York Times Magazine
Mr. Bush's condition and watched the
30 beats a minute. Dr. Lee said he had
White House about their pet ways of
Any time a President is suddenly
hours before he collapsed that he had
President carefully from his table.
heard the suggestion but said Mr.
taken ill, as Mr. Bush was in Japan,
illuminates the news.
nis
top
economic
WIII
Ammunition Plant, a
that the Federal- Reserve was squeezing
be confirmed to a new term, Senate
government-owned,
the U.S. economy by keeping interest rates
The inevitability of Greenspan':
contractor-operated
too high.
reflects both his personal credibilit:
installation, will lay off up to
190 workers beginning this
The president then turned around last fall and
any real alternative either to him (
month. Officials of Hercules
nominated the man in charge, Fed
With Bush and Congress often at 1
NEWS
Chairman Alan Greenspan, to a sec-
tax and spending policies that car
Inc. blamed a declining need
ANALYSIS
ond four-year term.
quickly or easily, the Fed has the 0:
for propellants and
Both Democrat and Republican members of
nomic policy game in town.
ammunition in the nation's
shrinking defense budget
Congress have grumbled that under Greenspan
And the ongoing political un
coupled with plans to reduce
the central bank has insisted on fighting an unnec-
Greenspan reflects the limits of the
Radford's operating costs.
essary war against inflation when it should have
See GREENSPAN, E2, (
Wendy's, the fast-food chain
parent, said its profit rose 40
percent in the fourth quarter
and 31 percent for all of 1991,
and its sales hit records.
Key Executives View Bush
Centel Corp., the
Chicago-based
telecommunications
company that employs 9,000
Trip to Japan as a Success
people, put itself up for sale
after directors voted to
tration and Congress that a cartel of
By Stuart Auerbach
solicit bids.
Japanese competitors has kept it out
Washington Post Staff Writer
of the commercial glass market, be-
AT&T said consumers who
While President Bush's trip to Ja-
lieves that an agreement between
use its telephone calling
pan last month has been widely seen
Bush and Japanese Prime Minister
cards now can leave
as a political disaster, key corporate
Kiichi Miyazawa to open that market
recorded messages for
executives who deal with Japan are
now gives it a chance of succeeding in
people they call when they
viewing it as a success that could pro-
Japan.
get a busy signal or no
duce expanded business and create
"Without the political effort from
answer. The company
the jobs for American workers that
the president in concluding the agree-
charges $1.75 for a
the president said he was aiming for.
ment, we stood a very small chance of
one-minute message.
Some business executives, includ-
succeeding. It's still an open question
Motorola said it is joining
ing several who went to Japan with
whether we will, but now we have a
E
forces with Aptronix, a
the president, said, in recent inter-
chance," said Peter Young, director of
a
developer of "fuzzy logic"
views they are seeing signs the trip
international business for Guardian, a
software application tools.
could help their efforts to sell not only
Michigan-based producer of glass
-3
Fuzzy logic is a relatively
in Japan but also in the rest of Asia.
products used in the construction and
William J. Wheeler, a corporate
automotive industries.
7!
new technology that
electronically approximates
vice president of Chicago-based FMC
Companies are reporting new op-
pε
Senate Majori
and even anticipates human
Corp., was in Tokyo a week after the
portunities even in the business of
-od
thought processes in control
president left to open a new Asian of-
selling U.S.-made auto parts to the
u! Si
and decision making.
fice for his company and said he im-
major Japanese producers, a sector
mediately noted a new willingness to
where American firms are battling
AFL-
cuts
Sony said it is developing
buy American products.
what they feel is the false-though
re-
Sony Digital Sound, a new
"ase
"The trip was a commercial suc-
widely held-view in Japan that their
technology designed to bring
cess," said Wheeler, whose company
products are inferior.
Labor
the i
sind
compact disc-quality sound to
makes a variety of products from ag-
John P. Reilly, president of Tenne-
motion pictures. It said it
ricultural chemicals to massive street
CO Inc.'s auto parts unit and head of
would disclose the full details
sweepers.
the government's Auto Parts Adviso-
By F
reduce
Washii
of the technology and the
"We believe that it created greater
ry Committee, who was on the presi-
the
of
timing of its introduction
dential trip, reported after revisiting
BAL HAR
the
opportunities. The Japanese are
ater this year.
oney to
clearly concerned about the political
Japan this month that Japanese auto-
Organized la
situation
[and] they are going to
makers are taking steps to buy Amer-
cit. But
INSIDE
gressional I
do something about it. It's going to be
ican-made parts for their plants in Ja-
also pin
coming invol
a bit easier to sell. The door is open a
pan and the United States.
proposal
with Preside
If the LTV bankruptcy
bit. Their uneasiness [about anti-Japa-
Reilly said that American parts
for the middl
process were a soap opera,
nese feelings in the United States] is
manufacturers have been invited to
01 she past few episodes would
likely to translate into some action, as
join the design process for 1995 mod-
In a policy
:ave drawn a lot of outrage,
little as they can get away with," said
el cars-a crucial step in winning a
the AFL-CIC
writes columnist Allan
Wheeler, who will be stationed in To-
big share of orders.
labor leade
Loan.
kyo.
On the services side, Maurice R.
should recog
page 3
Guardian Industries Corp., which
"Hank" Greenberg said Bush's discus-
dollars in a "
has complained to the Bush adminis-
See JAPAN, E2, Col. 4
send middle-
Photocopy-Preservation
not
ue
commried.
statement released by the Eco-
should "by no means be the center-
the
The labor leaders argued there would
Policy Institute, a Washington
be no guarantee that the tax savings
piece of the program to restart the
The AFL-CIO policy position puts
group financed in part by la-
economy."
labor somewhat at odds with the
resulting from the cuts would be
funds, Galbraith and the oth-
spent on goods and services.
The federation said it would go
Democratic leadership in the House,
omists said the rise in long-
"What a recession-weary nation
along with proposals now before Con-
which has adopted an economic re-
needs-and needs now-is jobs," the
gress to provide a temporary, two-
covery package that includes tax cuts
and the continued wide
for the middle class as well as cuts in
between long- and short-term
statement said. "The only way to cre-
year credit of 20 percent of Social Se-
both the capital gains tax and corpo-
suggest that the Greenspan
ate jobs quickly is through a program
curity taxes up to $400 per family and
rate income taxes.
a severe credibility problem."
of government fiscal stimulus-prim-
a permanent change in the deduction
Kirkland said he was not satisfied
credibility problem is this:
ing the pump with immediate, direct
for children to a credit of $800. But
with the Democratic plan and hoped it
and his Fed have made re-
government spending on public works
even here, the labor leaders said they
could be modified to meet labor objec-
nflation and inflationary expec-
projects, on education and training, on
would go along with such a change
tions. He said the AFL-CIO strongly
top priority. The markets
programs to build new housing for
only if the revenue loss were offset by
believes that investment income
means that the Federal Re-
low- and moderate-income Ameri-
a tax increase on the richest 1 per-
should not be taxed at a lower rate
raise short-term interest
cans, on aid to state and local govern-
cent of Americans.
than wages.
is any sign of an uptick in
ments to forestall further public ser-
The biggest problem with middle-
which is why long-term
While Kirkland had problems with
vice cutbacks and on the further
class tax cuts, the AFL-CIO said in its
not fall and stay down, the
some parts of the Democrats' eco-
extension of unemployment benefits
statement, is that it "threatens to dis-
said.
nomic program, he made it clear labor
to help those who remain jobless ride
tract Congress from what should be
policy requires a new
had no use whatsoever for the eco-
out the recession."
Reserve chairman, one who is
its highest priority-creating jobs
nomic recovery plan being offered by
AFL-CIO President Lane Kirkland
through a short-term dose of fiscal
President Bush.
be committed to economic
-including price stability-
later told a press conference that any
stimulus and enacting long-term
"I think this country needs beef and
new tax cuts should be "revenue neu-
one with a bias in favor of
measures to put the economy on a
he's offering us sushi-freeze-dried
inflation to the detriment of
tral" to prevent further increases in
solid footing and make the nation
sushi at that," Kirkland said.
growth," the economists de-
ispan and most other top Fed
hakers, however, believe the
If they ever let the underly-
Key Executives Praise Bush's Japan Trip
rate-that is, the rate ex-
volatile food and energy pric-
JAPAN, From E1
said a senior administration official
gether, Bush administration officials
to accelerate, prices will
who is working with the business
sion in Tokyo will allow his New
said they are urging Japan's Ministry
faster until the Fed is forced
council.
York-based American International
of International Trade and Industry to
cool off the economy and
he price balloon, they argue.
Group Inc. to sell commercial and in-
"It needs to be done by the private
push the top six Japanese automakers
try to keep things under con-
dustrial insurance to Japanese corpo-
sector. The Japanese corporations
to live up to their commitment, made
first place, they maintain.
rations that now deal only with do-
need to open up. They have to
during the Bush trip, to continue dis-
elieve that price-level stability
mestic firms related to them through
change their buying policies and in-
cussions with the Big Three U.S. car
to achieve a maximum sus-
interlocking ownerships.
crease their purchases of foreign
companies.
rate of growth over time,"
Robert Galvin, an executive with II-
products," the official said.
The U.S. side, which wants these
Kelley, another member
linois-based Motorola Inc. who has
This aims directly at the keiretsu
talks, invited their Japanese counter-
even-person Federal Reserve
more than 30 years' experience in
system, the Japanese business prac-
parts to Detroit this month to discuss
Ne also do not believe there is
dealing with Japan, told reporters
tice of dealing only with a network of
ways to ease the path for American
rate of inflation. If you come
here last month that American com-
companies related by cross-ownership
carmakers to sell in Japan. The Amer-
a 4 percent to 5 percent rate
panies will begin to see an increase in
that prevents outsiders from breaking
icans have no dealer network in Ja-
first thing you know it is
Japanese orders as a result of the
through.
pan, and with most dealerships con-
creeping up on you, and
8
president's trip by the end of this
Before the council's meeting, U.S.
trolled by Japanese manufacturers,
7,
or
9"
percent.
year, but it will take until 1994 for
government officials and business ex-
U.S. automakers need their competi-
was the threat the Fed saw
the full impact to be felt.
ecutives had said they wanted the
tors' cooperation to sell in Japan.
ago, Greenspan told sena-
To make sure that happens, the
heads of Japan's corporate giants at
1988 and early 1989, the
After one meeting in Tokyo during
was stretched so tight and
American side of the U.S. Japan Busi-
the U.S.-Japan Business Council
the Bush trip, the Japan Automobile
ness Council, which met here yester-
meeting to agree to a final communi-
ployment rate so low that in-
Manufacturers Association agreed to
day and Sunday, reportedly are press-
que that places a new stress on im-
accelerating.
further sessions. But late last month,
he was not at the Fed then,
ing their Japanese counterparts to
ports. A comminque is to be released
Nissan Motor Co. President Yutaka
recalls "the 1979-80 epi-
end their corporate protectionism and
today.
Kume, the head of the association,
inflation soared and the
set specific targets for including U.S.
At the same time, government and
lashed out at Chrysler Corp.'s Lee Ia-
the economy with the
companies in their buying plans.
business leaders want American cor-
cocca, who had sharply criticized the
interest rates since the Civil
"The U.S. executives are calling on
porations to be less shy about devel-
Japanese industry, as "outrageous and
it under control.
Japanese business for a joint program
oping an export culture instead of fo-
insulting." Kume said he has "no in-
not repeat that, to the ex-
on trade expansion and open markets
cusing on the U.S. market.
tention" of attending another auto
ability to prevent it," Kelley
that is a direct follow-up to the agree-
In a move to bring the squabbling
summit because they are "legally
ments between Bush and Miyazawa,"
U.S. and Japanese auto industries to-
risky" on antitrust grounds.
Photocopy-Preservation
October 30, 1991
MEMORANDUM FOR SPEECHWRITERS
RESEARCHERS
FROM:
JENNIFER GROSSMAN
SUBJECT:
ASIA PRE-ADVANCE RESEARCH
JAPAN
SCHEDULE
FRIDAY:
--arrival ceremony with Emperor (open press, troop
review), then courtesy call on Emperor at Imperial
Palace
--meeting with Prime Minister Miyazawa at Akasaka
Palace
--Imperial Banquet, Imperial Palace, after dinner toast
SATURDAY: --tennis and breakfast with the Emperor
--visit Mita Senior High School (visit geography lab,
then nationally televised 5 min. remarks followed by
Q&A with students from around the world).
-major speech at Japanese Diet, lower house. 15-20
minutes, focusing on the responsibilities of
interdependence, and maybe Japan's role in NWO.
brief remarks at Kodak R&D plant in Yokohama. First,
lunch with U.S. business leaders, Visit Kodak
Laboratory, then address to U.S. business leaders and
Kodak staff.
--one on one meeting with PM, then expanded bilaterals,
then joint press statement
--welcoming reception at Hotel New Otani with brief
remarks to 2000 -- a kind of welcoming committee of
business leaders, politicoes, etc. Tone should be real
upbeat.
--Dinner with PM at PM's residence, after dinner toast
SUNDAY:
--private breakfast
-Emperor makes goodbye call to POTUS
-attend church (maybe)
-Embassy greetings
--AF1 to Kyoto, accompanied by PM
-walking tour of Imperial Palace
-lunch with PM at Omiya Palace, (Secretary Alexander
may simultaneously lunch with Stanford students and
JET, Japan English Teaching Program, teachers).
Walking tour of Omiya gardens. Brief remarks to
American and Japanese students.
--may visit Nijo Castle
JAPAN
POLICY THEMES
Torkel Patterson of the NSC has advised me that while the
main focus of the President's trip here will obviously be on
trade issues, there will be a strong effort to tie in American
domestic concerns wherever possible. The context: the global
neighborhood; interdependence in communication/technology
revolutionized, politically post-modern (Pinkerton) new world
order.
Two challenges. One: selling a responsible trade policy
toward Japan back home, when the protectionist/isolationist
harangues from the right and left offer such politically
hysterical appeal. Two: eliciting concessions and continued
progress from the Japanese at a time when tolerance for continued
American Japan-bashing is reaching its limits.
A couple of notes on first challenge. Japanese buy more per
capita from America than Americans buy per capita from Japan (the
"trade deficit" as commonly heralded fails to account for
population ration, i.e. far greater U.S. pop than Japan pop).
The Japanese buy more from the United States than they buy from
the U.K., France, and Italy combined.
When addressing trade issues with the Japanese we might
stress "the opportunities and responsibilities of
interdependence.' We want to challenge Japan to have the most
open market by the year 2000. (Incidentally, in technical terms,
tariff barriers for instance, Japan's market is more open than
ours. Impenetrability more often comes from hidden barriers --
like regulation size paper or car manufacturing standards -- and
on Japanese consumer preferences for the familiar.) Anecdote:
Japan used to exclude American baseball bats because they didn't
carry the right seal, a seal only available to Japanese firms.
Encouraging continued Japanese progress on rectifying
environmental abuses: While industrializing, Japan was one of
the worst environmental offenders internationally. Since then,
they have made great strides in cleaning up their act. For
instance, all their taxicabs run on natural gas. While the
Japanese are generally willing to move forward on environmental
issues, intransigence stems from anxiety over "keeping your rice
bowl filled,' i.e. concern over loss of jobs in professions with
incidental abuse (e.g. fishermen, tortoise shell craftsmen). The
Japanese usually ask for "transition time" to retrain, relocate
those put out of work by conservation measures, while we want
change "now."
TOKYO SITES
1)
Imperial Palace: I was unable to go on this walk-through
but here's what I gather from other sources. The imperial
banquet will be held in a room called Homei-Den Hall. From
postcards, it looks kind of like a hotel ballroom, with some
kind of abstract Japanese painting of clouds on the wall.
This, apparently, is the way much of the palace looks. The
palace is actually only about 20 years old. The initial
greeting will take place in the Asahi-no-ma, or "Room of the
Rising Sun."
We had bombed the original Imperial Palace in World War
II; it was rebuilt in '69. The palace surrounds a huge
courtyard. The overriding characteristic of the place is a
vast emptiness -- large rectangular rooms with little or no
furniture, walls with sliding panels. The dining room table
will be a big U-shaped deal.
2)
Mita Senior High School: President will tour a couple of
classrooms, go to larger room with Mita students where he
will deliver brief remarks nationally televised. Then he
will field questions from students around the country via a
satellite hook-up. FYI: There's a concern that Japanese
students, generally not encouraged to participate or ask
questions in class, will be so awed by presidential presence
that they 11 simply clam up. Perhaps there's some way
(joke? comparison to American students?) that we can
sensitively circumvent such a scenario.
School itself not much different looking from American
high schools. 1,100 students. Was founded as a public
girls' school in 1923. Became coed in 1950, renamed Tokyo
Public Mita Senior High School. In 1977, Mita opened a
class for students returning from abroad. On a couple of
bulletin boards I saw improvised scrawled student demands
manifestos, requesting more interesting classes, more
understanding teachers, etc. These were the work of such
returning students, who are generally more outspoken and
participatory than their colleagues.
While part of our purpose is to show admiration for
Japanese academic excellence, it's ironic that the Japanese
themselves are quite critical of their own system. They in
turn look to our institutions for inspiration. The Japanese
criticize their schools for their emphasis on rote
memorization, aversion to innovation, and lack of
encouragement for independent, critical analysis by their
students. Recently they even passed legislation to stop
Saturday schooling.
I suggest we deal with this by stressing a theme of "we
have so much to learn from each other, rather than, "we
have so much to learn from you. Moreover, we can touch on
several non-school factors that account for Japanese
academic excellence -- strong family support, recognition of
the link between learning and success, early engendered work
ethic, etc.
3)
Japanese Diet, lower house: parliamentary amphitheater
style hall with large balcony. Rich wood detailing and
carving. POTUS to address reps from podium. 500 Diet
members. See pictures. In the entrance hall/lobby, there
are four pedestals in each corner. Three support statues of
great Japanese statesmen/historical figures, the fourth is
left empty as a symbol of hope, i.e. looking forward to the
great statesmen to come.
4) Kodak, Yokahama: POTUS will see several gee-whiz high tech
developments in progress, like a super high definition TV.
Brief remarks to Kodak staff. Kudos; America can compete;
appreciation for their hard work and investment; POTUS is
taking steps to improve America's competitiveness.
5)
Prime Minister's residence: unable to go on walkthrough.
CONTACTS: --Blair Hall of AmEmbTokyo, (03) 3224-5336
--Hiroshi Furusana, MOFA 3581-3802
KYOTO SITES
1) Kyoto Imperial Palace (FYI, I don't think there are any
remarks) : Originally built as the Emperor's second palace,
Kyoto Imperial Palace was used as the Imperial Palace from
1331-1867 after the original main palace burnt down. The
Imperial Throne and the August Seat of the Empress, still
used for coronations, are located here. Each rests on a
platform, and is covered with an octagonal canopy, decorated
with a large phoenix and eight small phoenixes.
The last "Ceremony of the Enthronement of His Majesty
the Emperor at the Seiden" took place in the Imperial Palace
on November 12, 1990
2) Omiya Palace: remarks to students should focus on building
bridges between our two countries through education, facing
the future together. See proverbs.
Some of the students are with the Stanford Japan
Center, established by Stanford University, "for the purpose
of educating future generations of Americans about Japan.
The Center also will provide an institutional link between
American and Japanese research in science, technology, and
social science with the aim of opening up crucial channels
of information and by embarking on new cooperative
initiatives in research between the two nations."
2) Nijo Castle (again, no remarks) : The castle was originally
built in 1603 to be the official Kyoto residence of the
first Tokugawa Shogun Ieyasu, and it was completed in 1626
by the third Shogun Iemitsu. The lavishly decorated castle
stands as a symbol of the power of the Tokugawa military
government. It contains the famous "Nightingale Corridor,"
whose floors are designed to creak with birdlike noises when
tread upon, thus foreboding an enemy approach.
JAPANESE COLOR:
1)
Finding humor is difficult. Most people I've spoken to say
that the Japanese aren't big on jokes, humor. Moreover,
they will not know to laugh if POTUS tells a joke.
2)
The "Japan Series" (similar to our 'world series') in
baseball has just started. This years favorites are the
Hiroshima Carp and the Seibu Lions.
3)
Sumo wrestling is Japan's national sport. Recently an
exhibition tournament was held in London. Two very popular
wrestlers are a pair of American brothers from Hawaii --
Konishiki, who's the biggest Sumo wrestler (600 lbs), and
Ake Bono, who's the tallest. Who knows, maybe we could make
a joke about "gross national products" to an American
audience -- large American exports.
4)
American movies, rock, and rap music are very popular.
Disneyland opened in Japan 6 years ago; Japanese love Mickey
Mouse.
5)
Karaoke is a popular Japanese social activity. Literally
meaning "empty orchestra," karaoke bars play music without
lyrics so that the patrons can star on vocals. Maybe
there's a joke about Barbara wanting to go Karaoke.
6)
Women control the finances in Japanese families -- when to
buy the car, when to invest, etc. The husband often asks
his wife for money for his expenses; this allowance is
called "Kozu Kai. Maybe POTUS can say, "I wanted to buy
some souvenirs, but Barbara cut my kozu kai.
7)
Of all their qualities, Japanese are proudest of their
perseverance, endurance, called "gamman." They rate harmony
as highest on their scale of social values.
8)
Relevant to Omiya in Kyoto: a handbook called A Look into
Japan tells us "The Japanese garden is designed to be a
faithful representation of nature and to impart a sense of
simple, unspoiled beauty."
9)
December 23 is the Emperor's birthday.
10) The speechwriting god (Curt, sit down) : Benten, one of the
seven deities of good fortune, is the goddess of eloquence,
music and wisdom.
11) "Banzai," literally meaning 'ten thousand years, is the
Japanese equivalent of 'three cheers.' It's usually
expressed at the high point or end of a celebration.
12) Japanese proverbs:
"The past is not to be blamed." (Ki-o wa togamezu) English
parallel would be: "let bygones be bygones."
"The lantern-bearer should go ahead." (Chochin-mochi wa saki
ni tate) Meaning, he who bears the light, whether material,
intellectual, or spiritual, should lead the way.
"A treasure decaying in one's hands." (Takara no mochi-
kusare) Meaning, those with talent or money should but them
to good use, or else they will rot away.
"To the upper hand there is an upper hand.' (Uwate ni wa
uwate ari). In other words, everyone has to answer to
someone. Maybe there's a first lady joke in here.
"Seven falls and eight rises.' (Nana-korobi-ya-oki)
Perseverance will win in the end.
"There are no national frontiers to learning." (Gakumon ni
kokkyo nashi) i.e. scholarship knows no boundaries.
"To study penmanship at eighty. (Hachiju no te-narai)
Meaning, it's never too late to learn. Could apply to
lifelong learning, or joke on POTUS computer lessons.
"Books are preserved minds." (Shomotsu wa hozon-sareta
kokoro nari) Reminiscent of Highet quote, 'Books aren't
lifeless lumps of paper, but minds alive on a shelf.'
KOREA
POLICY THEMES
Korea wants to have its cake and eat it too. On one hand,
it wants to have a close relationship with U.S., play the big
league with the big boys. On the other hand, it claims the
fragility of a developing economy to justify protectionist
policies. We think they're strong enough to forgo such a
handicap, with ultimately hampers true growth on both sides.
(Note: GB visited Korea after he went to Hirohito's funeral)
Politics: Korea only recently became democratized. We want
to encourage democracy, praise them for ongoing efforts and
progress in that direction.
(War) Heads up: North Korea is developing a nuclear weapon.
There are fears of his becoming the region's Saddam Hussein.
This issue requires some delicacy because a) we support
reunification and b) South Koreans regard their northern
neighbors as brethren. Kim Il Sung, the 82 year old "Great
Leader" of North Korea, will pass the reigns to his son, Kim Jung
Il, widely regarded as less than competent. Fears of a military
coup against the latter complicate the situation.
POTUS SCHEDULE
SUNDAY:
--AF1 to Korea for 3:30 arrival
--wreath laying ceremony at National Cemetery, no
remarks
--American community greetings at Collier Field House
--private dinner with President Roh at the Blue House
MONDAY:
--breakfast with US and Korean business community at
Hotel Shilla, 5-10 min. remarks (themes similar to
Kodak speech: U.S. can compete, we're working together
to expand trade, importance of GATT
--Arrival ceremony at Blue House
--one on one with President Roh, expanded bilaterals,
joint press statement at Blue House
--State Luncheon at Blue House hosted by Korean
President, after lunch toast
--Address to the National Assembly, 15 minutes
--travel to Camp Casey, press the flesh with American
soldiers, 5 min. remarks. Jovial, what a great job
you're doing, last of the front lines type speech.
Acknowledge difficulty of 1 year unaccompanied tour
SITES
1)
Blue House: not on walkthrough, but the scoop as far as I
know is that the Blue House is the official residence of the
President of ROK. The Blue House was constructed in 1927 as
the Japanese government's residence for its Governor-
General. It occupies the grounds of the Yi-Koong palace of
the Koryo Dynasty.
In '48, when ROK was established, the building was
designated the Presidential Residence. After the student
revolution of 1960, it was renamed Chong Wa Dae (Blue Tile
House), a name derived from its unique blue roof tiles.
2)
National Assembly: not on walkthrough, but apparently it's
your usual, rococo, elaborate parliamentary style. I'm told
there's a large symbol behind where POTUS will be standing:
the Flower of Eternal Life framing a Korean character.
The Assembly building is located on Yoido, a large
island on the Han River. Completed in 1975, it houses
offices, meeting rooms, and the Assembly's library. The
current National Assembly is composed of 299 members from
two political parties. It is the thirteenth National
Assembly since the founding of the Republic in 1948. The
Assembly Speaker is Park, Jyun Kyu.
3)
Camp Casey: not on walkthrough, but this base houses U.S.
servicemen on a one-year unaccompanied tour. Their duty is
an uneasy vigil at one of the world's last front lines.
Part of their work is to patrol the DMZ (demilitarized zone)
often camping out in no man's land.
While we honor the returning heroes of Desert Storm, we
should remember also courage and commitment of our men in
Korea -- whose courage and commitment often go
unacknowledged. POTUS should recognize the difficulty of a
one year unaccompanied tour; Camp Casey is what is commonly
referred to as a "hardship post."
CONTACTS: --AmEmbSeoul, 82-2-732-2106
COLOR
1) Koreans, I'm told, like the Japanese, would have trouble
knowing how to respond to a joke by POTUS. One way,
however, to break the ice and establish rapport, would be to
mention family -- his family, the American family, family
values, whatever.
2)
POTUS was here in '89, and also in '82 as vice president.
SINGAPORE
POLICY THEMES
Singapore is the only ASEAN country we'll visit -- therefore
we'll want to touch on issues common to those countries. (ASEAN
is made up of Singapore, Malaysia, Indonesia, Brunei, and the
Phillippines.) Singapore is our strongest ally in the region.
Singaporeans welcome us as a balance to Japanese investment.
They have a longstanding fear that Japan eyes them with military
interest.
We'll want to talk about South East Asia and Cambodia,
setting the stage for future dealings with Viet Nam. Instability
in the region: Thailand just had a coup, Burma has a
dictatorship. Cambodia, however, is soon to have UN sanctioned
elections. Ultimately, we'll want to resolve the POW/MIA
question -- an issue some unscrupulous people in the are have
exploited for profit. Resolution will require that Viet Nam be
completely open so we can scrutinize all the records. Until we
get to the bottom of POW/MIA, we can't really say that Viet Nam
is truly over.
I believe there are also some human rights concerns in
Singapore itself.
POTUS SCHEDULE
MONDAY: --AF1 to Singapore
TUESDAY: --Breakfast meeting at Raffles with U.S. ambassadors to
ASEAN countries, no formal remarks
--Arrival ceremony at Istana Palace
--POTUS makes courtesy call on President and Mrs. Wee
Kim Wee at the Istana Palace
--meeting with Prime Minister Goh Chok Tong, then
expanded bilaterals
--15 min. speech at lecture series to the
Singapore/American Business community, held in Westin
Hotel (Security and Trade: U.S. engagement in the
region; importance of working together towards the
future)
--Business Roundtable meeting at Hewlett-Packard, no
formal remarks
--groundbreaking ceremony for new American Chancery,
embassy greetings type remarks
--courtesy call on Senior Minister Lee Kuan Yew.
--State Dinner at Istana Palace hosted by President Wee
Kim Wee, after dinner toast
WEDNESDAY: -view static display at Changi airport
--AF1 to Australia
SITES
1)
Raffles Hotel (just FYI, no formal remarks planned at this
point). Wrote Rudyard Kipling, "Feed at Raffles when
visiting Singapore." Established in 1887, the hotel
symbolizes the exotic charm and colonial nostalgia often
associated with the area. The hotel was named after Sir
Stamford Raffles, founder of modern Singapore in 1819.
Celebs who added their aura to Raffles': Joseph Conrad,
Charlie Chaplin, Douglas Fairbanks, Somerset Maugham, Nowel
Coward, and sundry sultans, kings, and politicians. Raffles
embodied colonial high life: tea-dances, Charleston, jazz
bands, and billiards. Raffles is the birthplace of the
Singapore Sling. In 1902, the last tiger to be shot in
Singapore was pursued in Raffles, and finally dispatched
under the Bar & Billiard Room.
The hotel was declared a protected monument in 1987.
2)
Westin Hotel: the hotel is supposedly the tallest hotel in
the world. The lecture series in which the President takes
part is designed to give political, academic, and financial
eminentoes the opportunity to visit Singapore and mouth off.
Singapore gets to bask in their wisdom.
The series, inaugurated in 1980, is organized by the
Institute of Southeast Asian Studies. Previous speakers
include Henry Kissinger, Milton Friedman, Brian Mulroney,
Raymond Barre, and Giscard D'Estang. 1,500-2,000 will
attend speech.
3)
Groundbreaking ceremony for new American Chancery: this
event will basically take the place of Embassy
Greetings/American community remarks. Projected completion
for new embassy is 1995-6. 150-200 embassy staff, loads of
Singaporean schoolchildren. 2,000 guests in all. Site is
basically just a hill. Use your imagination. Building
metaphors applied to broader scope of U.S.-Singapore
relations might be appropriate.
The U.S. Ambassador in Singapore is Robert Orr. DCM is
Arthur Kobler.
4)
Istana Palace: previously called Government House, the
Istana was built in 1869 to house the British Governor of
Singapore. The grounds had been the nutmeg estate of
Charles Robert Princep. A statue of Queen Victoria was
installed in the drawing room to mark her jubilee in 1889.
Queen Elizabeth and the Duke of Edinburgh stayed there in
February 1972. The edifice itself looks like a cross
between a mini-Versailles and a southern plantation.
Adorning the entry foyer are a matching set of tusks
presented by the Sultan of Singapore to the British
government.
The staff of the President, the Cabinet Office, and a
section of the Prime Minister's office work at the Istana.
CONTACTS: --DCM, AmEmbSingapore, Arthur Kobler, 338-0251, ext.
217
--USIS, Dennis Donahue, 244-5233
COLOR
1)
Singapore is a country of many races, languages and
cultures. The population is made up of Chinese, Malays,
Indians and Eurasians. Harmonious multiculturalism. One
often hears the phrase, "many races, one people." Maybe we
can make some "E Pluribus Unum" connection.
2)
The first American consul in Singapore, Joseph Balestier,
came to the area in 1834 and took up his post in 1837 --
inaugurating 154 years of diplomatic relations. His wife,
Maria Revere Balestier, was the daughter of Paul Revere.
Balestier's memory lives on in a bell, now in
Singapore's National Museum, cast in Boston's Revere Works.
Mrs. Balestier, presented the bell to the original Church of
St. Andrew.
3)
American Embassy Singapore suggests a Pearl Harbor footnote
to our Singapore stop: POTUS will be at Pearl Harbor on
Saturday, commemorating the 50th anniversary of the Japanese
attack, and honoring the resultant 2,400 Americans dead or
missing. We might also remember that on the same day, but
on Singapore's side of the international dateline, the war
began for the Philippines, for Thailand, for Malaysia, and
for Singapore. Bombers appeared over Clark Field and over
Singapore. Ground troops landed at Songkhla and Pattani
(Thailand) and at Kota Baharu (Malaya). Singapore did not
then have an army (British and Australian forces were
there) ; Singaporeans who were either killed or injured were
civilians.
4)
Singaporean suffrage is universal and compulsory.
5) Orchids are a major Singaporean product (and they're
beautiful).
6) While there is no compulsory education in Singapore,
attendance is 94% and the literacy rate is over 87%.
7) POTUS and FLOTUS visited Singapore when Bush was Vice
President.
8)
When the President called Orr to offer him the
ambassadorship, one of his selling points was to tell the
future ambassador how comfy the Residence is. (Orr was
previously Governor of Indiana).
9) Quayle was here on May 22.
10) The origin of the name "Singapore" comes from the 13th
century's appellation of "Singapura," meaning "Lion City."
AUSTRALIA
POLICY THEMES
The last President to go down under was LBJ, 21 years ago.
Australia feels left out. They've been a strong ally -- there in
WWII, there in Nam, there in the Gulf. The Australians have been
very grateful to us for saving them from the Japanese in WWII.
But those warm feelings are now being tried by their anger over
trade policies (agricultural subsidies).
Oops on EEPS: Our Economic Enhancement Programs (an American
domestic subsidy so that we can export our products abroad at a
lower price) and the EC's strict protectionist policies have left
Aussies demonstrably furious -- riots, strikes. Need some
stroking action. POTUS needs to show himself as a champion of
free trade, "that's why the Uruguay round is so important, blah,
blah. Hopefully we'll have GATT progress we can highlight by
that time.
Generally, stress "harmony/kinship with the Australians."
CANBERRA
POTUS SCHEDULE
WED. DEC 4:
--arrival ceremony
THUR., DEC 5:
--Embassy greetings, hosted at Ambassador
Sembler's residence
--luncheon hosted by Prime Minister in Australian
Parliament Building's Great Hall. Toasts after
lunch; PM's toast/speech will be 5-10 mins., intro
POTUS for 3-5 mins. (may have to stretch if PM's
speech is longer).
--15-20 min. remarks to Australian Parliament
--meeting with Australian academic community;
talking points (don't know if we're responsible)
--Australian War Memorial
--Governor General Hayden's State Dinner at the
Government House
--RON Canberra
SITES
1)
Embassy Greetings: The Ambassador's Residence is 50 years
old, as are formal Australian-American diplomatic relations.
The ground lease for the mansion was signed while the
Japanese were bombing Australia. The house was built during
the war, and completed in 1943. Mrs. Roosevelt had a
personal interest here, and came out after the building's
completion to plant a tree.
The current Ambassador to Australia is Mr. Mel Sembler.
Ambassador and Mrs. Sembler are from Treasure Island,
Florida. In addition to the Embassy in Canberra, the U.S.
has three Consulates General in Australia -- one in Sydney,
Melbourne and Perth -- and a Consulate in Brisbane. There
is also a Consular Agent in Adelaide.
2)
Address to Australian Parliament:
The building itself is a striking postmodern palace,
designed by Roman Giurgola, and completed for the Australian
Bicentennial in 1988. The structure incorporates many
symbolic features which strive to reflect certain Australian
values, and resonate with Australian history, geography, and
culture.
For instance, on one side the earth, rather than
meeting the building at a right angle, runs gradually from a
distance and at an angle right up to the buildings peak
flagpole. This design twist represents the accessibility
and accountability of Australian government -- that the
government are subservient to those they serve.
Another example: in the forecourt of the Parliament,
along the walkway POTUS will follow, is a mandelic mosaic
design called "Meeting Place" which represents a meeting
place for all races and cultures. The work also celebrates
Australia's earliest settlers, so it is appropriate that an
Aboriginal artist, Michael Nelson Tjakamara, was asked to
create the centerpiece. It's pointillist strokes are
reminiscent of his tribes sand paintings.
Also neat: one of the original copies of the Magna
Carta is housed in the Parliament building.
POTUS will be greeted by the PM, walk up to the mosaic
in the middle, walk over and shake some Australian hands.
He then goes to lunch (check) in the Great Hall with the
ugly tapestry.
Parliament speech: POTUS starts out, "Thank you, Mr.
Speaker." (Speaker is Leo McLeay. Speech is not
teleprompted. House of Representatives: amphitheater-
like, modern, bathroom-tile-green. NOTE: this will be the
first time a foreign head of state has addressed a joint
session of parliament -- ever (POTUS should stress what a
great honor it is).
VERY IMPORTANT: We were going to do an event with the
Australia/USA Parliamentary Group which has now been cut --
so a specific reference should be included as to who they
are, what they do, kudos. The group is not a standing
committee or anything like that, just an association of
upper and lower house parliamentarians working to promote
US-Australian friendship ties. The group was formed under
the auspices of the Inter-Parliamentary Union, Australian
National Group in May '88. The bipartisan group is the most
active of all Parliamentary Friendship groups. For more
info, contact: Nonda on MP Eamon Lindsay's staff at 077-
724844.
3)
Australian War Memorial: (No remarks, just FYI) Built
roughly in the shape of a Byzantine church, the memorial is
the most popular tourist attraction in the nation's capital.
Event will take place in the rectangular, central
courtyard, which includes a commemorative stone, a pool of
reflection, the Eternal Flame, a commemorative area, and
then, enclosed, the Hall of Memory. The dome inside the
Hall bears a radial pattern which represents the spirits of
the war dead rising towards the central circle (heaven).
The memorial also contains a museum, whose galleries
evoke and explain the Australian experience of war.
Australians in combat: New Zealand (1860), Sudan (1885),
South Africa (1899-1902), China (1900-01), WW1 (1914-18),
WWII (1939-45), Korea (1950-53), Malaya (1950-60), Malaysia
(1963-66), Vietnam (1962-72), Persian Gulf (1991) -- we
might remember that the Aussies responded immediately in the
Gulf, needing no prompting.
Plaque in memorial reads: "The Australian War Memorial
commemorates those 100,000 Australians who have died in war
and recalls the service and sacrifice of all Australians in
wartime." Also, museum holds a mini-copy of Eugeni
Vouchetich's famous statue, "Beat the swords into
ploughshares." NOTE: Australian repatriation hospitals are
still treating men wounded in WWI. 496 Australians died in
Viet Nam; 2,398 were wounded.
4)
(no remarks, just FYI) After dinner, when POTUS toasts, the
only thing he says is: "Ladies and Gentlemen, Her Majesty
the Queen of Australia," in response to the Governor
General's "Ladies and Gentlemen, the President of the United
States of America." Hayden is Queen Elizabeth's
representative; there is a such a representative in each of
the 6 Australian states (Australia is a commonwealth).
Governor Generals are Australian citizens; their posts are
purely ceremonial. Hayden is Australia's former Foreign
Minister.
The Government House is an old cattle "station," or
property. It is a simple, classical mansion on the rim of
Lake Burley Griffin.
CONTACTS: --Lew Luchs, Media Counsellor, AmEmbCanberra, 270-5872
--Ray Burson, USIS, (062) 705966
--Marilyn Meyers, DCM, 270-5000
--AmEmbCanberra, after hours, 270-5900
SYDNEY
POTUS SCHEDULE
FRIDAY (DEC. 6th) :
--noon arrival at Sydney airport (QANTAS Jet Base)
--Sydney Convention and Exhibition Centre: 12:30-12:45
pre-lunch reception with South Wales Premier Grenier's
50 guests, 1:00 p.m. State Luncheon with remarks after
remarks and intro by Premier, 15-20 mins., 1,000 guests
--post-lunch reception with Australian American Coral
Sea Commemorative Council
--visit Australian National Maritime Museum, visit
American Gallery, brief remarks in dedication of
museum.
--harbor cruise on John Cadman III to Sydney Opera
House
--press conference at Sydney Opera House
--over to Kirribilli House for dinner?
--RON Sydney
SITES
1)
State Luncheon at Convention Centre: Both anthems played,
grace said, lunch served. After lunch, Premier Grenier
speaks then intros POTUS. Audience will be a cross-section
of the New South Wales Community. Centre is beautiful, yet
modern and antiseptic. Themes focus on our trade, joint
longterm commitments, the global marketplace, the coming
century, thread of education, etc.
If we touch on Asian topics, we might note that, for
more than a year, Australia has taken a leading role in
seeking a comprehensive solution to the Cambodian conflict
under UN auspices.
2)
Australian National Maritime Museum: Present are Prime
Minister and Mrs. Hawke, Chairman and Mrs. Doyle, Premier
and Mrs. Grenier, Ambassador and Mrs. Sembler. The event
serves as the official opening and USA Gallery Dedication.
2-3 min. remarks required, after brief remarks by Prime
Minister.
The building occupies a waterfront site on an arm of
Sydney Harbor, described by Mark Twain as "the darling of
Sydney and the wonder of the world." The sweeping curves of
the museum's white painted roof are reminiscent of waves,
clouds, and sails. It's interior is kind of split-level,
post-modern white. Almost warehouse looking, with hanging
mobiles and high ceilings. Out front, next to the museum's
sign, is a large mobile with fluctuating signal flags, the
kind used for intership communication. In one section is a
model of the Endeavor, presented as a gift by Queen
Elizabeth. The Endeavor was the ship commanded by Captain
Cooke when he discovered Australia. Also, there's a section
with surfboards (joke material?)
The American Gallery was our 1988 bicentennial gift to
Australia. Here, POTUS will unveil a plaque and then
briefly tour the gallery. The opening exhibit is called:
"Linked by the Sea," and that name is carved into the wall.
It explores the similar origins of our two countries. We
might use that as a theme, touching upon how our two
maritime traditions, among many other bonds, help contribute
to our mutual sense of kinship. One of the most powerful
links: The Australian and US navies fought side by side to
turn back the Japanese military advance in WWII. Five
months after the outbreak of war in the Pacific, the Battle
of the Coral Sea in May 1942 was a crucial strategic victory
for the allies, and the first reverse for the Imperial
Japanese Army.
FUN FACTS:
*Australia has a long maritime heritage,
going back at least 50,000 years to the
probable arrival of the first humans from
Asia.
*There were three Americans on board Endeavor
when Cook discovered the east coast of
Australia in 1770 (but they were British
loyalists).
*The first foreign merchant vessel to arrive
in New South Wales was a US ship with a
welcome cargo of rum and other supplies.
*The first person to ride a surfboard in
Australia was a Hawaiian -- Duke Kahanamoku.
****Note: The exhibit houses two periscopes, one of
which is from the same class of submarine as the one which
collected the President after he was shot down in WWII.
More information is on the way via fax.
CONTACTS: --Margaret Eubank, Public Affairs Officer (USIS) 261-
9244
--Consulate General (after hours) 963-1209
--Ian Wilcock, Asst. Sec. Americas Branch, Australian
Dept. of Foreign Affairs and Trade, (06)261-2711
--John Wade, Sr. Curator, Australian National Maritime
Museum, (02) 552-7728
AUSTRALIA COLOR
(among other materials, files include extensive info on above
sites, speech excerpts from American Ambassador Sembler
GENERAL
1)
Australians in film: Errol Flynn, Mel Gibson, Paul Hogan
(one of screenwriters and main actor in "Crocodile Dundee),
Dean Semler (cinematographer of "Dances with Wolves.")
2)
Australians in music: Olivia Newton John, Men At Work, Bee
Gees.
3)
Washington Post cartoonist Patrick Oliphant is from
Australia.
4)
James Tuckey, a lieutenant aboard the ship which took the
first unwilling settlers into Port Phillip Bay (the future
Melbourne) in 1803 wrote:
"I beheld a second Rome rising from a coalition of banditti.
I beheld it giving laws to the world, and superlative in
arms and in arts, looking down with proud superiority upon
the barbarous nations of the northern hemisphere."
5)
Maybe POTUS could do a joke about vegemite, or vegemite
sandwiches. There's potential for humor in the fact that
Australians love the stuff while we think it's yucho. Maybe
at a luncheon, "Despite our many similarities, Americans
have never really developed a taste for your vegemite. In
fact, when I asked about today's menu, I was assured -- no
vegemite. \ Actually, I was worried about the broccoli.
6)
On Australian TV there's a very famous show called, "Skippy
the Bush Kangaroo." Everyone knows about Skippy, he's kind
of equivalent to our Lassie. Maybe a joke about, "I hear
that here in Australia, you have 'Skippy the Bush Kangaroo.'
Well, back home we have 'Millie the Bush Canine. (Tony
Mauro: Millie the Bush Scoobydoo). Or, "I was a little
nervous about playing golf here, what with all the kangaroos
running around. \ Fortunately, I've got Skippy on my side.' "
7)
In May 1836, President Jackson appointed J.H. Williams as
the first American Consul in Australia. The "Colonist, " a
newspaper of the day, welcomed his arrival, praising America
thus: "Scarcely is there a sea which their ships do not
plough, or a port in which they do not ride " (maybe for
Maritime Museum?)
8)
"The Australians did not seem to me to differ noticeably
from Americans, either in dress, carriage, ways
or
general
appearance."
--Mark Twain, 1895.
9)
Another link between Australia and the United States during
the 19th century: from 1897-1898, Herbert Hoover, later to
become the 31st U.S. President, worked in Western Australia
as a young mining engineer.
10) "Next to our own nation we place our kindred in America."
--Alfread Deakin, 1905 (Australian statesman?)
11) In September 1918, Australian and American troops fought
alongside each other in the main attack on the Hindenburg
Line which ended World War I, a battle experience to be
shared again in WWII, Korea and Vietnam.
12) In 1969, an Australian radio telescope and an American
antenna brought us the historic television pictures of the
first manned landing on the moon. The picture everyone
remembers -- Neil Armstrong's leg searching for the surface
-- was first seen in a tracking station briefing room near
Canberra. As a compliment to Australia, NASA in 1971 named
Apollo 15 "Endeavor after Captain Cook's Endeavor.
13) Australia's coat of arms consist of a shield containing the
badges of the 6 states. The supporters are native
Australian fauna -- a kangaroo and an emu. A yellow-
flowered native plant, wattle, also appears in the design.
14) Note: Australia taxes capital gains. (Individuals and
companies pay at different rates)
15) Bush has called the Australian-American relationship "an
intimate partnership between two peoples."
16) In the Persian Gulf, the first combined boarding to enforce
UN resolutions was by the USS Brewton and the HMAS Darwin.
17) 300,000 US tourists visit Australia annually.
18) "It will be a very poor day when little Australia won't be
able to summon up its traditional impudence by looking at
the U.S. and saying, 'What do you mean, you big stiff?'"
--Sir Robert Menzies in the Sydney Morning Herald,
27 June 1964. (Possible rejoinder: "Well,
Australia is not all that little, and I hope that
America is not all that stiff." Could be relevant
re. trade disputes)
19) "You must be the most beautiful people in the world."
--Duke Ellington, in the Sydney Morning Herald, 7
Feb. 1970.
20) Every year, America sends a high level delegation to
participate in the Coral Sea Commemoration. Dan Quayle was
here in '89 and Bush was here in '82.
21) Rugby and Cricket are Australian national pastimes. Rugby's
World Cup will be over by the end of October. It will be
the first time an American team has participated.
22) One of the most popular Australian television shows is
called "The Flying Doctor." Joke potential? LA Law is the
most popular American TV show here. The Civil War series
was also very popular.
CANBERRA
1)
American architect Walter Burley Griffin designed
Australia's capital. Griffin was from Chicago; studied
under Frank Lloyd Wright.
2) Canberra is known as "The Bush Capital." I think there is
joke potential here, e.g. 'I know Australians and Americans
are close, but you didn't have to name your capital after
me.')
3)
Canberra's detractors often refer to the capital as
"Monumentsville," "a city without a mind," "the city of the
gray flannel mind,' and "a great waste of sheep country."
Canberra's fans call her "the garden city of the
Commonwealth" or "the front window of the nation." They
also say that "to know Canberra is to love it."
4) The name "Canberra" comes from "Canberry," an Aboriginal
word meaning "meeting place."
5) In Canberra, the kangaroos have a habit of falling people's
swimming pools (don't worry, they don't drown) joke
potential?
6) Australia has the 10 most popular snakes in the world,
starting with the Death Adder.
7)
POTUS visit coincides with the annual advent of fly season.
Aussies are constantly waving off the insects, a gesture so
common it's nicknamed the "Australian Wave." Maybe POTUS
can joke: "Australians have a reputation for warmth and
hospitality. In fact when I got off the plane, I told
Barbara how flattered I was that they were all waving to me.
She said, 'Sorry to burst your bubble, George, but it's fly
season.
8)
Kangaroos abound on tennis courts, golfing greens. Maybe
there's a joke about POTUS asking PM what kind of penalty
you get for hitting a roo.
SYDNEY
1)
In the bay cradled by Darling Harbor stands a little rook
named Fort Denison. It was built in the 1840's to keep
Americans away at a time when the colonists in Sydney were
concerned about possible American aggression springing from
Anglo-American contention. It's a cute, little-known fact,
which reflects the loyalty of the early Australian colony.
2)
During World War II, Japanese submarines actually made it in
to Sydney Harbor. This illustrates what a mortal threat
Japan posed at the time, and provides a sharp contrast with
present relations.
3)
Looking out upon Sydney Harbor, the eye is drawn to the
Pacific horizon. Given our policy themes, we might want to
talk about Australia's "window on the Pacific,"
geographically as well as politically and economically.
3)
Aside from the Sydney Opera House, the Sydney Harbor Bridge
is also considered a famous symbol of the city.
4)
On the state crest of South Wales appear a latin motto that
translated means: "Newly Risen, How Brightly We Shine."
HONOLULU
THEMES:
The stop centers around the 50th Commemoration of Pearl
Harbor. We want to recognize the sacrifice of those
who lost their lives and those who lost their loved
ones on December 7, 1941. Lt. Gen. Fields talked of
creating a realization for the American people that the
attack changed America forever. We went from being an
isolationist nation to an international superpower.
POTUS SCHEDULE
FRI, 12/6:
--evening AF1 to Honolulu
SAT, 12/7:
--7:30 helo to naval base, barge to USS Arizona
for memorial ceremony. Presidential honors, brief
remarks by Admiral Larson, Rear Admiral White,
Moment of Silence, ship whistle, missing man
flyover, national anthem, flag raising, 5 min.
remarks.
--8:20 depart for K-8 (Kilo 8, it's like a pier),
honors arrival, Joo intros POTUS, remarks 15-20
mins.
--9:00 depart for Hickam AFB, proceed to Kenney
Conference room for brief remarks to Asian
Ambassadors (in Honolulu attending annual meeting
of Chiefs of Missions Conference).
--depart Honolulu
SITES
1)
USS Arizona: The memorial itself is a bier-like structure,
white, with open windows on the sky. Supported above the
water, it straddles the midsection of the sunken Arizona,
whose bow and stern are marked by buoys. Toward the back of
the memorial is a chapel-like enclosure housing a wall with
all the names of Arizona's drowned. POTUS's back will be to
this wall, in front of him is a cutaway section in the
memorial's floor, where one can peer down on the submerged
starboard.
Remarks here are brief, as they are part of a larger,
hour-long ceremony. Here, as in the longer speech,
acknowledgments are key: both sites are far too small to
accommodate the vast number of veterans, families, and
guests. POTUS will be introduced by a survivor.
Acknowledgements should be handled with care to make sure
that no group (particular ship vets, vet organizations,
etc.) are slighted.
In particular, while the memorial is for the Arizona,
mentions should be made of USS Utah. The two downed ships
are the only that have people entombed in them (1, 177 went
down with the Arizona, 58 went down with the Utah). Also,
while the longer speech contains a more general Pearl Harbor
focus, the memorial speech should be more specific to those
who went down with the Arizona and other ships, more of a
naval aspect.
Notes on the Arizona:
*One-third of all those who died at Pearl Harbor went down
with the Arizona.
*USS Arizona is still commissioned.
*USS Nevada, there during the attack, will be in port to
take part in the ceremony.
*Over 34 sets of brothers were killed on the Arizona.
*While I was there, I saw old women throwing leis in the
water; they were crying. I'm told Japanese visitors also
make their own pilgrimage to give leis.
*There is still oil leaking from the wreck; its viscous
iridescence coats the water under and around the memorial.
*In the same harbor as the memorial is the Bowfin -- the
sister submarine to the one that picked up POTUS when shot
down.
*It's possible that commemoration will include the same
vintage plane that POTUS flew in WWII.
*Sec. Cheney might take part in the day's events.
To come: I'm having faxed extensive detail on the memorial,
a history of the attack, letters sent by those aboard
Arizona shortly before it was bombed, letters written by
family members of the fallen, letters written by contrite
Japanese, survivor quotes on reconciliation, and more.
Research: get book, The Day of Infamy. Also, look for
recent Approach magazine with Bush on cover; it has a
detailed description of his involvement in WWII.
2)
Major speech at K-8: Kilo 8 is a fairly nondescript pier,
though apparently they'll fix it up for the commemoration.
These longer remarks will be teleprompted. POTUS will be
speaking with his back to the water, historical battleship
row, and then Ford Island. Behind his right shoulder is the
Arizona, behind his left, the Missouri. Note: look at
above, Arizona info for color, etc.
3)
Remarks to Asian Ambassadors: Conference room within AFB
administrative building. Building exterior retains strafed
pocks of Japanese attack. Remarks are kind of wrap up of
themes and policy objectives of whole Asia swing. Asst.
Secretary for East Asia Solomon is the host of the
ambassadors, but he probably won't be in on meeting.
Remarks are brief; wouldn't be surprised if talking points
get substituted.1
SEA OFJAPAN
80 KORAI
KOREA
*
Pyongyang
81 KORAI
KOREA
SEA OF JAPAN
Seoul
YELLOWSE
The Korean Democratic People's
When the Exclusion Doctrine, which
Republic sees the white in its flag as
closed the country to foreign inter-
a symbol of purity, strength, and
course, was ended in 1876, Korea
dignity. White has, however, been the
recognized the necessity of a national
traditional color of the Korean nation
flag. The flag hoisted in August 1882,
for centuries. The blue stripes rep-
THIXTOI
when the first envoys were sent to
resent a commitment to peace, while
Japan, became official on 27 January
the red indicates that the nation is on
1883. It differed from the present flag
the path to socialism.
STATE ARMS
only in minor details.
STATE ARMS
Officially adopted
25 January
1950.
1:2
2:3
Officially adopted
8 September 1948.
The star is a symbol of the leading
From 1910 to 1945 Korea was under
role played by the Korean Workers
Japanese occupation, followed by
Party in creating the new economic,
three years of American and Soviet
social, and political structure of the
administration. In 1948 the Republic
Vladimir Lenin-Communist
country following World War II.
of Korea reestablished the t'aeguk
theoretician and leader of the
Because Korea is basically an agricul-
flag which was given its present form
Russian Revolution, which led to
tural nation, sheaves of rice surround
two years later.
the establishment of the first
the coat of arms adopted by the
Its white field stands for peace and
Communist state in the world-
Korean Democratic People's Republic
in 1948. The sheaves are bound by a
PRESIDENTIAL FLAG
the white clothing Koreans have
2:3
was well aware that the success
traditionally worn.
of his undertaking would not be
red ribbon bearing the name of the
The t'aeguk in the center resembles
complete until it affected the
state. At the center is a landscape
the yin and yang of Chinese philo-
everyday lives and beliefs of
reflecting the country's determina-
sophy and expresses the diversity of
individual citizens. His statement
tion to industrialize. A hydroelectric
forces in the universe and their inter-
that "Communism is Soviet
station and dam, perhaps the one
action. The kwae on either side
power plus electrification of the
built on the Amnokan River, figure
correspond to the four cardinal direc-
whole country" is reflected in the
prominently.
tions, the seasons, and the sun, moon,
design of the arms of the Korean
earth, and heaven.
Democratic People's Republic.
2:3
118
119
KANGWON
KOREAN PROVINCES
NORTH CHUNGCHONG
MEDITERAL
82 KUPROS/KIBRIS
NORTH JONLA
CYPRUS
Nicosla
*
SOUTH JONLA
CHEJU
Composed partially of Greek and par-
AC:
tially of Turkish populations, Cyprus
chose a flag of neutral design and
colors when it became independent.
1960
The yellow color of the island is said
to stand for the copper, mined since
Roman days, which gave Cyprus its
name. The olive branches below are
STATE ARMS
for peace and prosperity; essentially
Officially
hoisted
16 August
1960.
III
DJON-L PUK
3:5
2t
HO
НП
NORTH JONDA
the same symbolism is reflected in
offici In
the coat of arms.
The Cypriot national flag is rarely
DIONLA NAM
seen in the north of the island where
SOUTH JONLA
the Turkish Federated State of Cyprus
Officially holsted 31 July 989.
exists under the protection of troops
from Turkey.
2:3
TURKISH FEDERATED STATE OF CYPRUS FLAG
#23
(above) AND ARMS (right)
1975
Certain parts of Cyprus known as
W
the Sovereign Base Areas remain
mm
KANCAWON
under the control of the former
1960
Offici IN tober 962
colonial power, Great Britain, and
fly only the Union Jack.
20
121
The Kyōngbok Palace
Seoul stands at the foot
Pugak. The palace was
the Yi dynasty, which governed built
united 1910. Korea from 1392
© AL MICHAUD/FPG
SEOUL, sõl (Korean: Soul, se-ool), the political,
and shopping centers. Only in the north was the
economic, and cultural center of the Republic of
city's growth restricted. There the Pukhan
Korea (ROK), or South Korea. Completely re-
Mountain massif rises to 2,743 feet (836 meters).
built and, modernized since the Korean War
(1950-1953), the ROK capital is one of the
that leads to Üibőngju.
compressing urban spread into a narrow valley
world's largest cities.
The City Center. The heart of Seoul is the
The government's ambitious postwar pro-
ancient capital of the Yi dynasty state of Choson
grams of economic development attracted mil-
(1392-1910). Traces of the old walls remain on
lions of workers to Seoul. Nearly half of the
the Yi city's mountain rim. Although skyscrap-
ROK's factory employees make their livelihood
ers crowd historic sites, the central city retains
in the city, and Seoul provides the national econ-
the layout of the royal capital, which was de-
omy with a quarter of all value added by manu-
signed according to traditional Chinese princi-
facturing. Leading industrial products are tex-
ples of urban planning. Main streets run north-
tiles and clothing, machinery and electronic
south and east-west. Chong-no, "Bell Street,"
equipment, chemicals, and food. The city is also
extends from the East Gate to where the West
the financial and publishing center of the ROK.
Gate once stood. At the foot of Mt. Pugak in the
Modern highway and rail systems connect
north is Kyōngbok Palace, the primary royal com-
Seoul with all corners of the ROK. Kimp'o Air-
plex of the Yi dynasty, overshadowed by the
port on the western edge of the city handles an
former Capitol Building, which is now in use as
ever-increasing volume of traffic with the world.
the National Museum of Korea. From the palace
Nearby Inch'on, on the Yellow Sea, is the city's
entrance the broad Sejong-no, "(King) Sejong
seaport, but expressways permit Seoul to make
Street," leads down to the old city's South Gate.
efficient use also of the distant port of Pusan.
South Mountain (Nam-san) marks the southern
limit of the Yi capital.
1. Setting and Description of the City
Several other palace areas are prominent
Seoul is situated on the lower Han River in
within the central zone. Tōksu Palace, original-
the west-central part of the Korean Peninsula.
ly a detached villa, is next to City Hall Plaza.
The Korean War left the capital only 35 miles (55
Not far away is a complex of royal sites that
km) from the Demilitarized Zone established be-
includes two more palaces, Ch'angdōk and
tween the South and North in 1953.
anggyöng, a royal park of great scenic beauty
The city has a monsoonal climate character-
called the Secret Garden (Piwon), and the ances-
ized by cold, dry winters and hot, moist sum-
tral shrines of the Yi dynasty (Chong-myo).
mers. Mean monthly temperatures range from
Nearby, on the grounds of Songgyun gwan Uni-
23.2°F (-4.9°C) to 77.7°F (25.4°C). Rainfall is
versity, is the old Confucian Academy and shrine
heavily concentrated in the summer. Spring and
to Confucius.
autumn are the most pleasant times of the year.
City Hall Plaza is the hub of much of the
From its historic core in a mountain bowl
ROK's economic life. Converging on it are two
north of the river, Seoul has expanded in every
subway routes and streets lined with large corpo-
direction, going up valleys, over hills, and
rate office buildings, banks, hotels, and depart-
around mountains. On the south, for example,
ment stores. Beyond lies the fashionable
where in 1950 the city was bounded by the Han,
Myöngdong shopping district, noted for its bou-
the municipal limits now include extensive areas
tiques and restaurants. Myöngdong and adja-
beyond the river. Yoido, an island in the river,
cent streets east of City Hall Plaza are the center
and Kangnam, on the south bank, have be-
of night life in downtown Seoul.
come major population centers, complete with
Outlying Areas. Seoul is divided into wards
high-rise apartment complexes, office buildings,
(ku), two of which encompass most of the old roy.
562
background
notes
South Korea
United States Department of State
April 1991
Bureau of Public Affairs
(1988)-of those eligible, 99% attended
Natural resources: Limited coal,
middle school, 94% attended high school.
tungsten, iron ore, limestone, kaolinite, and
Literacy-98%. Health (1987): 1 doctor/
graphite.
1,000 persons. Infant mortality rate
Agriculture, including forestry and
(1988)-6/1,000. Life expectancy (1988)-
fisheries (9% of 1990 GNP): Products-rice,
men 67 yrs., women 73 yrs. Work force
barley, vegetables. Arable land-22% of
(17 million, 1988): Agriculture-21%.
land area.
Industry-28%. Services-50%.
Mining and manufacturing (35% of 1990
GNP): Textiles, footwear, electronics,
shipbuilding, motor vehicles,
Government
petrochemicals, industrial machinery.
Type: Republic with powers shared
Trade (1990): Exports-$65 billion:
between the president and the legislature.
manufactures, textiles, ships, electronics,
Independence: August 15, 1948.
footwear, steel. Major markets-US, Japan,
Constitution: July 17, 1948; last revised
European Community, Middle East.
1987.
Imports-$70 billion: crude oil, food,
Branches: Executive-president (chief
machinery and transportation equipment,
Official Name:
of state). Legislative-unicameral National
chemicals and chemical products, base
Republic of Korea
Assembly. Judicial-Supreme Court and
metals and articles. Major suppliers-
appellate courts, Constitutional Court.
Japan, US, Middle East.
Subdivisions: 9 provinces,
Official exchange rate (December
PROFILE
6 administratively separate cities (Seoul,
1990): 715 won=US$1.
Pusan, Inchon, Taegu, Kwangju, Taejon).
Fiscal year: Calendar year.
Geography
Political parties: Government party-
Democratic Liberal Party (DLP).
Membership in
Area: 98,500 sq. km. (38,000 sq. mi.); about
Opposition parties-New Democratic Union
International Organizations
the size of Indiana. Cities: Capital-Seoul
(NDU) and Democratic Party (DP).
Official observer status at UN; active in many
(10 million). Other major cities-Pusan (3.5
Suffrage: Universal at 20.
UN specialized agencies (FAO, GATT, IAEA,
million), Taegu (2 million), Inchon (1.4
Central government budget (1991):
IBRD, ICAO, IDA, IFAD, IFC, IMF, IMO, ITU,
million). Terrain: Partially forested
Expenditures-$38 billion.
UNCTAD, UNDP, UNESCO, UNICEF, UNIDO,
mountain ranges separated by deep, narrow
Defense: $11 billion, about 4% of GNP in
UPU, WHO, WIPO, WMO, WTO) and other
valleys; cultivated plains along the coasts,
real terms and 29% of government budget;
international organizations (Economic and
particularly in the west and south. Climate:
about 650,000 troops.
Social Commission for Asia and the Pacific,
Temperate.
Flag: Centered on a white field is the
Geneva Conventions of 1949 for the Protection
ancient Chinese symbol of yin and yang; at
of War Victims, Asian Development Bank,
each corner of the white field is a different
INTELSAT, the Administrative Council of
People
trigram of black bars.
the International Telecommunications
Nationality: Noun and adjective-
Council, International Whaling Commission,
Korean(s). Population (1988): 43 million.
Interparliamentary Union, INTERPOL);
Economy
Annual growth rate: 1%. Ethnic groups:
official observer status in African Develop-
Korean; small Chinese minority. Religions:
GNP (1990 est.): $224 billion. Annual
ment Bank (member of Africa Development
Buddhism, Christianity, Shamanism,
growth rate (1965-86): 7%; (1986-88): 12%;
Fund), International Labor Organization,
Confucianism. Language: Korean.
(1990 est.): 9%. Per capita GNP: $5,500.
and Organization of American States.
Education: Years compulsory-6. Number
Consumer price index (1990 avg.
of students-11,182,000. Attendance
increase): 9%.
126
Yangdog up
Wonsan
128
130
million), Japan (700,000), the United
Onch'on
'yongyang
South Korea
States (1.2 million), and the Soviet Union
Korea
Yonsan
Kosan,
T'ongch'on
Bay
Songnim
*
National Capital
(500,000).
Name o
D
NORTH KOREA
Kuūm-ni
Railroad
Demarcation Line
Sariwon
and Demilitarized Zone
Ich'ane
Expressway
Sinch'on
yonggang
Kansong
Road
Changyon-up
P'yongsan's
Language
Hwach'on
Haeju
Yonch'on
Injeup
Kaesong
Yangyang
-38
Korean is a Uralic language, remotely
Ongins
anmunjom
0
25
Munsan
Ch'unch'on
50 Kilometers
related to Japanese, Hungarian, Finnish,
Kengnöng
0
25
50 Miles
Vijongbu
Kukobon
and Mongolian. Although dialects exist,
Hongch'on
Kimp
Ullüng-do
the Korean spoken throughout the
Seoul
Yoyang-ni
Pukp'yöng-ni
then on
Yangp yong
peninsula is mutually comprehensible.
Wonju
Yoju
Suwon
Hwangji-r
Chinese characters were used to write
Pyongtaek Ansöng
Chungru
Chech'on
Korean before the Korean Hangul
Tanyang
alphabet was invented in the 15th
Ch'onan
Sosan
Yongju
century. These characters are still in
Yech'on,
Ch'ongju
Chomch'on
Yongyang
Hangsong
Sea
limited use in South Korea, but the North
Poun
Sangju
Andong
Kongju
Uisong
Yongdok
Taech'on
Taejon...
of
uses Hangul exclusively. Many older
Yellow
Kimch'on
Japan
people retain some knowledge of
Sea
Bngdong
Japanese from the colonial period (1910-
36
'ohang
36
Kunsan
Iri
Yongch
45), and most educated Koreans can read
Chönju
Kyongju
Taegu
Chinan
English, which is taught in all secondary
Anui
Ulsan
schools.
Hyöpch'ön
Chongup
Onyang
Namwon
Namji
Yonggwang
Yangsan
Kwangju
Chinju
Masan
Chinhae
Religion
Posan
D
Yongsanp'o Sunch'on
Samch'onp's
Korea's traditional religions are
Mokp
Posong
DO
Do
YOSU
Western Kōje-do Channel
Strait
Shamanism and Buddhism. Although
Kohang
Buddhism has lost some influence since
Kangjin
HÜKSAN-
Shushi
Chindo
the 15th century, it still commands the
0
CHEDO
Tsushima
Chin-do
Wando
Korea
Eastern Channel
greatest number of adherents of any
faith-about 20% of the population.
34
34
Shamanism (traditional spirit worship)
Iki
Cheju-haehyōp
is still practiced in some rural areas.
Fukuoka
Although Confucianism remains the
Cheju
dominant cultural influence, its religious
JAPAN
Cheju-do
Kyushu
adherents are few and tend to be elderly.
Christian missionaries arrived in
Sasebo
Boundary representation is
Omuta
126
Korea in the 19th century and founded
not necessarily authoritative
128
130
schools, hospitals, and other modern
institutions throughout the country.
PEOPLE
efforts in the comparatively
Today, nearly 7 million Koreans, or 16%
underpopulated and resource-rich north,
of the population, are Christians (about
Korea was first populated by a Tungusic
resulting in a considerable migration of
78% Protestant)-the largest figure for
branch of the Ural-Altaic family, which
people to the north from the southern
any East Asian country except the
migrated to the peninsula from the
agrarian provinces. This trend was
Philippines. There are estimated to be 4
northwestern regions of Asia. Some also
reversed after World War II, when more
million adherents of Chondogyo, a native
settled parts of northeast China
than 2 million Koreans moved from the
religion founded in the mid-19th century
(Manchuria); Koreans and Manchurians
that fuses elements of Confucianism and
north to the south following the division
still show physical similarities-in their
of the peninsula into US and Soviet
Christianity.
height, for example. Koreans are racially
military zones of administration. This
and linguistically homogeneous, with no
southward migration continued after the
sizeable indigenous minorities, except
HISTORY
Republic of Korea was established in 1948
Chinese (50,000).
and during the Korean war (1950-53).
South Korea's major population
About 10% of the people in the Republic
According to Korean legend, the god-king
centers are in the northwest area of
Tangun founded the Korean nation in BC
of Korea are of northern origin. With 43
Seoul-Inchon and in the fertile southern
million people, South Korea has one of the
2333, after which his descendants reigned
plain. The mountainous central and
over a peaceful kingdom for more than a
world's highest population densities-
eastern areas are sparsely inhabited.
millennium. By the first century AD, the
much higher, for example, than India or
Between 1925 and 1940, the Japanese
Korean Peninsula, known as Chosun
Japan-while the territorially larger
colonial administration in Korea
("morning calm"), was divided into the
North has about only 20 million people.
concentrated its industrial development
kingdoms of Silla, Koguryo, and Paekche.
Ethnic Koreans now residing in other
The Silla kingdom unified the peninsula in
countries live mostly in China (2.6
2
AD 668. The Koryo dynasty (from which
firestorm of protest in South Korea.
A year later, on June 25, 1950, North
is derived the Western name "Korea")
Trusteeship was unacceptable to
Korean forces invaded South Korea. The
succeeded the Silla kingdom in 935. The
nationalist leader Syngman Rhee and
UN, in accord with its charter, engaged in
Yi dynasty, which supplanted Koryo in
other rightist Korean leaders associated
its first collective action by establishing
1392, lasted until the Japanese annexed
with the provisional government
the UN Command (UNC), under which 16
Korea in 1910.
established in Shanghai in 1919 by Korean
member nations sent troops and
Throughout most of its history,
nationalists living abroad. It was also
assistance to South Korea. At the
Korea has been invaded, influenced, and
opposed by groups within southern Korea
request of the UN Security Council, the
fought over by its larger neighbors.
who had established local self-governing
United States, which contributed the
Korea was under Mongolian occupation
bodies after the Japanese surrender.
largest contingent, led this international
from 1231 until the early 14th century and
The US military government initially
effort.
was devastated by a large number of
relied on the advice of conservative
After initially falling back to the
Chinese rebel armies in 1359 and 1361;
elements but later tried to put together a
Pusan perimeter, UN forces conducted a
the Japanese warlord Hideyoshi launched
moderate coalition to provide it with a
successful surprise landing at Inchon and
major invasions in 1592 and 1597. In the
broader base of political support. In
rapidly advanced up the peninsula. As the
mid-19th century under the Yi kings,
December 1946, the military government
main UN force approached the Yalu
Korea adopted a closed-door policy to
established an interim legislative
River, large numbers of Chinese "people's
ward off Western encroachment, earning
assembly to draft legislation and
volunteers" intervened, forcing UN
Korea the name of "Hermit Kingdom."
appointed moderates to half the seats.
troops to withdraw south of Seoul. The
Although the Yi Dynasty paid nominal
(The others were indirectly elected seats
battle line seesawed back and forth until
fealty to the Chinese throne, Korea was,
that went to rightists.) But the July 1947
the late spring of 1951, when a successful
in fact, independent until the late 19th
assassination of a prominent leftist in the
offensive by UN forces was halted to
century. At that time, Japanese, Chinese,
coalition and the decision of a coalition
enhance ceasefire negotiations prospects.
and Russian competition in Northeast
moderate to enter into unification talks
The battle line thereafter stabilized north
Asia led to armed conflict. Japan defeated
with the north led to the demise of the
of Seoul near the 38th parallel.
its two competitors and established
coalition effort.
Armistice negotiations began in July
dominance in Korea, formally annexing it
The joint Soviet-American
1951, but hostilities continued until July
in 1910. The Japanese colonial era, which
commission provided for by the Moscow
27, 1953. On that date at Panmunjom, the
lasted until the end of World War II, was
conference met intermittently in Seoul
military commanders of the North
characterized by tight control from Tokyo
but became deadlocked over the issue of
Korean Army, the Chinese People's
and ruthless efforts to supplant Korean
free consultations with representatives of
Volunteers, and the UNC signed an
language and culture. Korean resistance
all Korean political groups for establish-
armistice agreement. Neither the United
to such colonialism, notably in the 1919
ment of a national government. The US
States nor South Korea is a signatory of
Independence Movement, failed.
submitted the Korean question to the UN
the armistice per se, though both adhere
At the April 1945 Yalta Conference,
General Assembly for resolution in
to it through the UNC. No
the United States and the Soviet Union
September 1947.
comprehensive peace agreement has
agreed to establish a joint trusteeship for
replaced the 1953 armistice pact, which
Korea. The trusteeship was intended as a
remains in force. Thus, a condition of
temporary administrative measure
Korean Conflict
belligerency still exists on the divided
pending democratic elections of a Korean
The Soviet Union and the Korean
peninsula. A Military Armistice
government. The US proposed-and the
authorities in the north ignored the UN
Commission (MAC), composed of 10
Soviet Union agreed-that Japanese
General Assembly resolution of
members, five appointed by each side,
forces surrender to US forces south of the
November 1947, which called for UN-
supervises implementation of the
38th parallel and to Soviet forces north of
supervised elections throughout Korea.
armistice.
that line.
Elections, nonetheless, were carried out
In April 1954, an international
In the north, the Soviets initially
under UN observation in the south, and
conference on Korea met in Geneva but
transferred the administrative powers of
on August 15, 1948, the Republic of Korea
ended without agreement or progress
the former Japanese colonial government
(ROK) was established. Syngman Rhee,
after 7 weeks of futile debate.
to "people's committees," and later to a 5-
became the republic's first president. On
province administrative bureau under the
September 9, 1948, the Soviet Union
nationalist, Cho Man-Sik. Cho was later
established the Democratic People's
Postwar Developments
purged by the Soviets for opposing the
Republic of Korea (DPRK) in the north
Syngman Rhee served as president of the
decision of allied foreign ministers at the
under Kim Il Sung, a former anti-
Moscow Conference in December 1945 for
Republic of Korea until April 1960, when
Japanese guerrilla who served with the
university students forced him to step
a 5-year trusteeship, during which a
Soviet Army in the Far East during
down. A caretaker government was
Korean provisional government would
World War II.
established, the constitution was
prepare for full independence.
Guerrilla fighting between southern
amended, and national elections were held
In the south, the US military
and northern forces intensified during
government in Korea (1945-48), headed
in June. The opposition Democratic Party
1948-50. During this period, although the
by Lt. Gen. John R. Hodge, was marked
easily defeated Rhee's Liberals, and the
US provided modest military aid to the
by uncertainty and an unclear US policy
new National Assembly named Chang
south, it planned and executed a
toward Korea. The Moscow conference's
Myon prime minister in August. Chang's
withdrawal of its occupation forces which
decision for a trusteeship also generated a
democratic but ineffectual government-
was completed by June 1949.
3
the Second Republic-lasted until May
broad legal powers to control dissent. An
35 seats for Kim Jong Pil's New
1961, when it was overthrown in an army
active and articulate minority of students,
Democratic Republican Party (NDRP),
coup led by Maj. Gen. Park Chung Hee.
intellectuals, clergy, and others remained
and 10 for independent candidates.
After 2 years of military government
critical of the Chun government and
The new opposition-dominated
under Park, civilian rule was restored
demonstrated against it. Demonstrations
national assembly quickly challenged the
with the advent of the Third Republic in
at Inchon in May 1986 and at Konkuk
president's prerogatives. In July 1988 it
1963. Park, who had retired from the
University in fall 1986 were marred by
turned down President Roh's choice for
army, was elected president (and was
violence.
chief of the Supreme Court. In the fall,
reelected in 1967, 1971, and 1978).
In April 1986, the president
the assembly conducted the first
In 1972, a popular referendum
responded to a signature campaign by the
government audit in 16 years and began
approved the Yushin (revitalizing)
opposition New Korea Democratic Party
televised hearings into practices and
constitution, greatly strengthening
(NKDP), which called for direct election
policies of former President Chun's Fifth
presidential and executive branch
of the next president by amending the
Republic. By late November, Chun was
powers. Key provisions included indirect
constitution. The NKDP soon split into
forced to make a public apology to the
election of the president, presidential
two opposition parties-Kim Dae Jung's
nation, turn over his personal wealth to
appointment of one-third of the national
Peace and Democracy Party (PPD) and
the nation, and go into internal exile in a
assembly, and presidential authority to
Kim Young Sam's Reunification
Buddhist temple. In December, the
issue decrees restricting civil liberties in
Democratic Party (RDP). They agreed
government and the assembly for the first
times of national emergency. Park
on eight demands for reform including
time worked together to pass the budget,
subsequently issued several such decrees;
constitutional revision, repeal or revision
which the government had previously
the best-known of these, EM-9, banned
of onerous laws, and release of political
handed down.
discussion of false rumors, criticism of the
prisoners.
After months of speculation and
constitution or advocacy of its reform, and
President Chun, who could not
demands from the opposition that
political demonstrations by students.
succeed himself, pledged in early 1987
President Roh hold the interim
The Park era, marked by rapid
that he would step down at the end of his
assessment on his administration that he
industrial modernization and
term in February 1988. Chun suspended
had promised while campaigning, Roh
extraordinary economic growth, ended
all discussion of constitutional revision in
decided in March 1989 to postpone the
with his assassination in October 1979.
June 1987, and the ruling Democratic
evaluation indefinitely, citing the unstable
Prime Minister Choi Kyu Ha assumed
Justice Party approved Chun's hand-
political situation. Labor, farmer, and
office briefly (the Fourth Republic),
picked successor, Roh Tae Woo. Students,
student unrest continued despite Roh's
promising a new constitution and
and then the general public, took to the
promises of further reforms.
presidential elections. In December 1979,
streets to protest Chun's suspension of
In April 1989, the government began
Maj. Gen. Chun Doo Hwan and close
constitutional revision. On June 29, in a
cracking down against leftist elements it
military colleagues removed the army
surprise move, presidential candidate
maintained were destabilizing the
chief of staff and soon effectively
Roh Tae Woo distanced himself from
country. The nation was shocked by the
controlled the government.
President Chun by announcing that he
deaths of seven policeman in Pusan in a
University student-led demonstra-
would implement democratic reforms if
confrontation with students. This was
tions spread in the spring of 1980. The
elected. The constitution was revised in
soon followed by the illegal visit of 71-
government declared martial law in mid-
October to include direct presidential
year old dissident Rev. Moon Ik Kwan to
May, banned all demonstrations, and
elections and a strengthened National
North Korea. Rev. Moon embraced North
arrested many political leaders and
Assembly consisting of 299 members.
Korean leader Kim Il Sung while in
dissidents. Special forces units in the city
In December 1987 Roh Tae Woo won
Pyongyang and was arrested upon his
of Kwangju reacted harshly to any who
with 37% of the vote in the first direct
return to South Korea. In July, student
ignored the ban, setting off a confronta-
presidential election since 1971. The two
activist Yim Su Kyong made an
tion which left 200 civilians dead. This
leading opposition leaders, Kim Dae Jung
unauthorized visit to the North to attend
incident left a wound that has proven
and Kim Young Sam, unable to agree on a
Pyongyang's World Youth Festival and
slow to heal. By September 1980,
single candidate, both ran and lost. Kim
was arrested. In August opposition leader
President Choi had been forced to resign,
Dae Jung, Kim Young Sam, and former
Kim Dae Jung was indicted in connection
and General Chun, by then retired from
prime minister Kim Jong Pil polled 27, 28
with unauthorized visits to North Korea
the army, was named president.
and 10%, respectively.
by one of his party members, Suh Kyong
In October 1980, a referendum
The new constitution entered into
Won. In October the government
approved a new constitution, beginning
force in February 1988, when President
acknowledged that 1,315 people had been
the Fifth Republic. This document
Roh assumed office. Elections for the
arrested in the first 9 months of 1989,
retained key features of earlier ones,
national assembly were held on April 26.
including 284 for security violations.
including a strong executive and indirect
In a stunning upset, President Roh's
South Korean politics have changed
election of the president, but limited the
ruling Democratic Justice Party (DJP)
dramatically because of the 1988
chief executive to one 7-year term.
won only 34% of the popular vote, thereby
legislative elections, the assembly's
Elections were held in early 1981 for a
losing control of the assembly for the first
greater powers under the 1987
National Assembly and an electoral
time since 1952. The final count was 125
constitution, and the influence of public
college; the latter elected President Chun
seats for the DJP, 70 seats for Kim Dae
opinion. There has been significant
to a 7-year term (1981-1988).
Jung's Party for Peace and Democracy
political liberalization since 1987,
Although martial law ended in
(PPD), 59 seats for Kim Young Sam's
including freedom of the press and
January 1981, the government retained
Reunification Democratic Party (RDP),
greater freedoms of expression and
4
assembly than in the past. In 1988, the
middle-ranking industrial power. Lacking
somewhat by the spring of 1983 when a
government released several hundred
natural resources, Korea's greatest asset
strengthening US economy helped
political prisoners and restored the civil
is its industrious, literate people.
stimulate Korean economic performance.
rights of former detainees. In 1989, the
The division of the Korean peninsula
From 1986 to 1988, booming exports led
government asserted its prerogatives to
in 1945 created two unbalanced economic
once again to high growth rates averaging
maintain public stability, raising concerns
units. North Korea inherited most of the
12% per year. Current account surpluses
over human rights issues.
peninsula's mineral and hydroelectric
reached a total of $14 billion by the end of
The nation was stunned in January
resources and most of the heavy
1988, at which time foreign debt had
1990 when the 3 political parties led by
industrial base built by the Japanese.
decreased to $31 billion-18% of GNP and
President Roh, Kim Young Sam, and Kim
South Korea was left with a large,
44% of exports.
Jong Pil merged to form a new majority
unskilled labor pool and most of the
Korea registered bilateral trade
party, the Democratic Liberal Party
peninsula's limited agricultural resources.
surpluses of about $10 billion with the US
(DLP). This new alliance left Kim Dae
Both north and south suffered massive
in 1987 and 1988. In 1989, Korea's global
Jung and his Party for Peace and
destruction in the Korean war, but an
trade and current account surpluses and
Democracy (PPD) as the primary
influx of refugees added to the south's
bilateral surplus with the US declined
opposition, since the tiny Democratic
economic woes. South Korea began the
dramatically, due to a number of factors:
Party (DP) controlled just eight seats in
postwar period with a per capita gross
appreciation of the won, labor disputes,
the National Assembly. In July 1990, the
national product (GNP) far below that of
cumulative wage increases and strong
DLP passed several significant bills
the north. It received large amounts of
domestic demand. The surplus remained
without debate, and the PPD and the DP
US foreign assistance until the 1970s. All
approximately $4 billion in 1990. It has
precipitated a legislative crisis by
US direct aid was stopped in 1980.
yet to be demonstrated, however,
announcing a boycott of the national
South Korea's meager mineral
whether a structural, lasting decline in
assembly. The PPD returned to the
resources include tungsten, anthracite
Korea's surplus has begun. Long-term
assembly in November, only after getting
coal, iron ore, limestone, kaolinite, and
growth prospects remain bright. External
assurances on several issues, including
graphite. There is no oil, and energy
factors will remain important. Korea
greater local autonomy. In March 1990
is a continuing concern for the ROK's
continues to emphasize exports, while the
the ROK held its first local elections in 30
economic planners. An ambitious
quickly expanding domestic market
years. Further local elections were
program to develop nuclear power is
provides greater economy of scale. The
planned for June 1991, and the trend
well underway; Korea now has eight
ability to adapt to a more open system
toward greater democratization
nuclear plants in operation, one
suitable to a growing democracy and to
continued to gain momentum.
under construction and two planned.
Korea's greater role in the world economy
The nation's successful industrial growth
are important to the continued success of
Principal Government Officials
program began in the early 1960s, when
the Korean economy.
the Park government instituted sweeping
President-Roh Tae Woo
economic reforms emphasizing exports
Prime Minister-Roh Jae Bong
and labor-intensive light industries. The
FOREIGN RELATIONS
Deputy Prime Minister; Chairman,
Economic Planning Board-
government also carried out a currency
Lee Seung Yun
reform, strengthened financial
South Korea is committed to peaceful
Minister of Foreign Affairs-Lee Sang
institutions, and introduced flexible
settlement of international differences, a
Ock
economic planning.
commitment best illustrated by its
Minister of National Defense-Lee
From 1963 to 1978, real GNP rose at
restrained response to a number of
Jong Ku
an annual rate of nearly 10%, with
provocations by North Korea over the
Ambassador to the United States—
average real growth of more than 11% for
past 15 years. These include the 1968 Blue
Hyun Hong Choo
the years 1973-78. While Korea's national
House raid, the October 1983 bombing in
Ambassador to the UN-Roe Chang
production was rising throughout the
Rangoon, Burma, which killed six of the
Hee
1960s and 1970s, the annual population
ROK's most prominent leaders, and the
Speaker of the National Assembly-
growth rate declined to the current 1%,
November 1987 bomb explosion aboard
Park Jyun Kyu
resulting in a 20-fold increase in per
Korean Air Lines flight 858, in which 115
Korea maintains an embassy in the
capita GNP. Per capita GNP, which
lives were lost. Captured North Korean
United States at 2320 Massachusetts
reached $100 for the first time in 1963,
agents confessed to all of these acts.
Avenue NW., Washington, DC 20008
now exceeds $4,000, or four times that of
South Korea is becoming increasingly
(tel. 202-939-5600).
North Korea.
active in international affairs. Although
The political and social unrest that
not a UN member, it has launched a
followed the 1979 assassination of
campaign to join that organization.
ECONOMY
President Park and the effect of world
However, North Korea opposes separate
economic developments, including the
admission to the UN on the grounds that
Over the past 25 years, the Republic of
drastic increase in world oil prices in 1979,
it would perpetuate the division of the
Korea's economic growth has been
triggered a severe recession in Korea. In
peninsula; some of its allies support this
spectacular. Despite the need to maintain
the early 1980s, external debt was a
contention. South Korea presently has a
a large military, South Korea, one of the
serious concern, peaking at $47 billion in
UN observer mission headed by an
world's poorest countries only a
1985. The economy had already recovered
ambassador and is active in most UN
generation ago, is now the United States'
seventh largest trading partner and a
5
specialized agencies. In addition, South
centering on mutually beneficial economic
de facto recognition of each other's
Korea has made efforts to join or
activity. Although the legacy of historic
existing political, social, and economic
participate actively in many other
antipathies has at times impeded
systems. South Korea supports the
international fora, ranging from the
cooperation, relations at the government
recognition of both Koreas by the major
Antarctic Treaty to the Organization for
level have improved steadily and
powers in the region (US, USSR, PRC,
Economic Cooperation and Development
significantly in the past several years.
and Japan), and the admission of both
(OECD).
Korea's economic growth, energy
Koreas to the United Nations, pending
South Korea today has diplomatic
requirements, and need for basic raw
peaceful reunification. North Korea
relations with 148 countries and an even
materials and for markets have given
currently rejects these ideas, although it
broader network of trading relationships.
economic considerations high priority in
applied for UN membership in 1949
It has hosted a series of prestigious
the country's foreign policy. In light of
(following the lead of the ROK) and
international events, including the 1988
these concerns, Korean diplomacy in
supported a Soviet Union draft in 1957,
summer Olympics. A total of 159
recent years has also concentrated on
resubmitted in 1958, which called for
countries participated in the Seoul
broadening its international base of
"simultaneous UN admission." The North
Olympics, making it the largest Olympics
support with Third World nations, the
now argues that this proposal would
ever. Only six nations followed North
Association of Southeast Asian Nations
perpetuate the peninsula's division.
Korea's call to boycott. Chinese, Soviet,
(ASEAN), and Middle Eastern states.
Tension between North and South
and Eastern European participation in
Korea wants to participate actively in
Korea increased dramatically in the
the Seoul Olympics underscored and
Pacific basin economic affairs. It has
aftermath of the 1983 North Korean
accelerated President Roh's policy of
offered to host in 1991 the third
assassination attempt on President Chun
"Nordpolitik"-the pursuit of wide-
ministerial meeting on Asia-Pacific
in Burma. North-South sports talks the
ranging relations with socialist nations
Economic Cooperation initiated by
following spring became acrimonious
and contacts and dialogue with North
Australian Prime Minister Hawke.
after the Rangoon bombing. South
Korea.
Korea's suspicions of the north's motives
Nordpolitik has so far met with
were not diminished by Pyongyang's
notable success. In February 1989,
Negotiating Efforts
proposal for "tripartite" talks on the
with North Korea
Hungary became the first communist
future of the Korean peninsula. This
nation to establish full diplomatic
Throughout the postwar period, both
initiative, made public in January 1984,
relations with the ROK. The ROK now
Korean governments have repeatedly
called for talks with the United States in
has diplomatic relations with all the
affirmed their desire for reunification of
which "South Korean authorities" would
countries of Eastern and Central Europe
the Korean peninsula, but, until 1971, the
be permitted to participate. The tripartite
except Albania. Nordpolitik's crowning
two governments had no direct, official
talks would replace the armistice
achievement came in September 1990,
communication or other contact.
agreement with a peace treaty, which
when the ROK and USSR opened formal
In August 1971, North and South
would provide for withdrawal of all US
diplomatic relations. In early 1991 the
Korea agreed to hold talks through their
troops and set the stage for a declaration
ROK and People's Republic of China
respective Red Cross societies with the
of non-aggression between north and
exchanged trade offices, a clear sign of
aim of reuniting the many Korean families
south.
improvement in relations and a possible
separated following the division of Korea
North Korea's offer to provide relief
first step toward eventual diplomatic
and the Korean war. After a series of
goods to victims of severe flooding in
relations.
secret meetings, both sides announced on
South Korea in September 1984-and
The South Korean government and
July 4, 1972, an agreement to work
South Korean acceptance-led to revived
politicians have long been concerned over
toward peaceful reunification and an end
dialogue on several fronts: Red Cross
the fate of the 35,000 Koreans on Sakhalin
to the hostile atmosphere prevailing on
talks to address the plight of separated
Island, now under Soviet control. Koreans
the peninsula. Officials exchanged visits
families, economic and trade talks, and
were originally brought to Sakhalin by
and regular communications were
parliamentary talks. However, in January
the Japanese as forced labor. A series of
established through a south-north
1986, the north unilaterally suspended all
semi-official Korean delegations visited
coordinating committee and the Red
talks, arguing that annual ROK/US
Moscow and Sakhalin in 1989. These
Cross, but the two sides made no
military exercises were inconsistent with
contacts resulted in Soviet agreement to
substantive progress. These initial
dialogue. The north also announced a
increase the flow of ethnic Koreans in
contacts quickly broke down and finally
unilateral moratorium on large-scale
Sakhalin allowed to visit South Korea. In
ended on August 13, 1973. The breakdown
military exercises and called upon the US
addition, 20 first-generation Koreans
reflected basic differences in approach,
and ROK to do the same. The US and the
from Sakhalin were repatriated in 1988
with Pyongyang insisting on immediate
ROK responded by reiterating their
after more than 40 years away from their
steps toward reunification before
longstanding offer to allow DPRK
homeland.
discussing specific issues and Seoul
officials to observe exercises and by
Following the ratification in 1965 of a
maintaining that, given the long history of
proposing pre-notification of military
treaty normalizing relations between
mutual distrust, reunification must come
exercises. These proposals were rejected
Japan and Korea, the two nations have
through a gradual, step-by-step process.
by the north, and in 1987 the north
developed an extensive relationship
South Korea maintains that a
resumed large-scale exercises.
meaningful dialogue should be based on
6
In a major new initiative on July 7,
Pyongyang as a party head in a group
well as a private protocol he signed to
1988, South Korean President Roh Tae
with southern opposition and dissident
develop tourism and other projects in the
Woo called for new efforts to promote
leaders. However, he later referred to
north.
exchanges, family reunification, inter-
Roh by his official title and, in his 1991
Korean trade and contact in international
New Year's address, offered a revised
fora. President Roh called on Korea's
version of his confederal proposal in
US-KOREAN RELATIONS
friends and allies to pursue contacts with
which he suggested that regional
the north and said that the south intended
governments would exercise independent
The United States remains committed to
to seek better relations with the USSR
foreign and defense policy.
maintaining peace and stability on the
and China.
Following the ROK government's
Korean peninsula. The United States
Roh's initiative provided renewed
1988 decision to allow trade with the
agreed in the 1954 US-ROK Mutual
momentum to a dialogue suspended since
DPRK, South Korean firms began to
Defense Treaty to help the Republic of
late 1985. Over the following months, the
import North Korean goods, all via third-
Korea defend itself from external
two sides met several times at
country contracts. The DPRK has
aggression. In support of that
Panmunjom to try to arrange a joint
denounced and denied this trade.
commitment, the US maintains about
meeting of the two Korean parliaments.
Nevertheless, the north publicized a late
43,000 service personnel in Korea,
In early 1989, both sides also met in
January 1989 visit by Hyundai
including the army's Second Infantry
preliminary meetings to discuss
Corporation founder Chong Chu Yong as
Division and several air force tactical
arrangements for prime ministerial-level
squadrons. To coordinate operations
talks. In other fora, the two national
between these units and the 650,000-
Olympic committees met to discuss
strong Korean armed forces, a combined
forming a joint team for the 1990 Asian
forces command (CFC) was established in
Games in Beijing.
Principal US Officials
1978. The CFC is headed by a US general
In February 1989, North Korea
who serves concurrently as commander in
suspended the parliamentary talks over
Ambassador-Donald P. Gregg
chief of the UN Command (CINC-UNC).
US-ROK military exercises. In April the
Commander in Chief, UNC-
Gen. Robert RisCassi
Several aspects of the security
north suspended the prime ministerial
talks and the sports talks until July,
Deputy Chief of Mission—
relationship are changing as the US
blaming South Korea's arrest of a
Raymond F. Burghardt
moves from a leading to a supporting role.
Counselor for Political Affairs—
South Korea has agreed to pay more of
dissident clergyman who visited North
E. Mason Hendrickson, Jr.
the US defense costs, to fund relocation of
Korea without government approval.
Counselor for Economic Affairs—
the large US headquarters garrison at
In the fall of 1989, the dialogue resumed
Richard Morford
Yongsan from Seoul, and to accept
in four fora-athletic, Red Cross,
Counselor for Administrative Affairs-
changes in the CFC command structure.
parliamentary, and prime ministerial. In
Oliver P. Garza
The United States supports direct,
the Red Cross talks, there were attempts
Counselor for Public Affairs—
government-to-government talks
to reach agreement on reunions of
John Fredenberg
between the authorities of South and
separated family members and exchanges
Consul General-Edward H. Wilkinson
North Korea. The US believes that the
of cultural arts troupes.
Counselor for Commercial Affairs—
fundamental decisions on the future of the
Prime ministerial-level talks were
Peter Frederick
Counselor for Agricultural Affairs-
Korean peninsula must be taken by the
initiated in 1990. Delegations met three
George J. Pope
Korean people themselves. Therefore, the
times, although little concrete progress
was made. The north cancelled the fourth
Chief, Joint US Military Advisory
US has refused to be drawn into separate
Group, Korea-
negotiations on Korean issues with North
meeting, scheduled for February 1991,
Gen. Robert J. Jellison
Korea, as Pyongyang has insisted.
once again citing annual exercises as the
Defense Attache-
The most rapidly developing area in
reason.
Col. William McKinney, USA
Korean-US relations is that of economics
Hopes for a summit (proposed
and trade. Korea is now its seventh
repeatedly in the past) have also been
The US Embassy is located at 82
Sejong-Ro, Chongro-Ku, Seoul; APO
largest trading partner, and the US seeks
unfulfilled. President Roh, in a speech to
San Francisco 96301. Tel. 82-2-732-
to improve its trade imbalance, through
the UN General Assembly in October
2601, Fax no. 82-2-738-8845.
greater access to Korea's expanding
1988, offered to go to Pyongyang at any
market and improved investment
time to discuss any issue, including North
The US Agricultural Trade Office is
opportunities for US business. Although
Korea's call for a mutual declaration of
located at 63, 1-Ka, Ulchi-Ro, Choong-
Korea is reluctant to abandon industrial
non-aggression. North Korean President
Ku, Seoul. Fax no. 82-2-752-5626.
protection and the state-directed
Kim Il Sung did not respond positively.
The US Export Development Office/
industrial policy which played such an
Kim had earlier stated that a summit
US Trade Center is c/o US Embassy.
important role in its industrialization,
must first take up his proposal for Koryo
Fax no. 82-2-739-1628. Director: William
Korean policy-makers increasingly claim
confederation and withdrawal of US
M. Yarmy.
to recognize the benefits of liberalized
forces. In his 1989 New Year's address,
trade for their economy. Korean leaders
Kim suggested that Roh come to
seem determined to manage successfully
7
the complex economic relationship with
TRAVEL NOTES
the United States and to take a more
active role in international economic fora
as befits Korea's status as a major trading
Climate and clothing: Korea's
Health: Health services are fair to good
nation.
temperate, four-season climate is like
in most major cities. Most Korean
Since the 1950s, the US-Korean
that of the eastern US. Dress is more
physicians have been trained in
conservative than in the US.
relationship has developed into one of the
Western medicine, and hospital services
most important in Asia. The 1982
are adequate. Outside of the major
Visas: Visas are not required of tourists
hotels, water generally is not potable.
celebration of the centennial of Korean-
travelling to South Korea if their stay is
American diplomatic relations and
less than 15 days or if they are simply
Transportation: International airports
President Reagan's 1983 visit to Korea
transiting the country and have a ticket
serve Seoul (Kimpo), Pusan (Kimhae),
underscored the quality of US-Korean
for an onward destination. Tourist visas,
and Cheju Island. Extensive intercity air,
relations. In 1989, a succession of high-
which should be obtained from a Korean
rail, and bus service is available. There
level visits-President Bush (February),
consulate for longer stays, are issued
is an excellent network of local bus, taxi,
Vice President Quayle (September) and
for a 5-year period with multiple entries,
and, in Seoul, subway services.
but the length of any one visit should not
President Roh (October)-reaffirmed a
Tele-communications: Seoul is 14 time
exceed 90 days. Visas are required for
determination to develop and strengthen
all official and business visitors. No
zones ahead of Eastern Standard Time
the bilateral relationship further.
immunizations are required of travelers
(13 hrs. during daylight-saving time).
President Roh visited the US again in
International direct-dial service is
from the US.
June 1990.
available to Korea's major cities.
Published by the United States Department of State
Bureau of Public Affairs
Office of Public Communication
Washington, DC
April 1991
Editor: Peter A. Knecht
Department of State Publication 7782
Background Note Series
This material is in the public domain and may be
reproduced without permission; citation of this source would be appreciated. For sale by the Superintendent of Documents, US Government
Printing Office, Washington, DC 20402
=
U.S. Government Printing Office : 1991 282-557/20528
DEC-16-91 MON 12:11
P.01
UNITED STATES DEPARTMENT OF COMMERCE
International Trade Administration
STATES of /
Washington, D.C. 20230
International Trade Administration
FAX # (202) 377-3968
TRADE INFORMATION & ANALYSIS
U.S. Department of Commerce
Office of Trade and Investment Analysis
Room 2219
Washington D.C. 20230
(202) 377-2456
NUMBER OF PAGES BEING TRANSMITTED ** 6 (INCLUDING COVER PAGE)
PLEASE DELIVER MATERIAL TO:
RECIPIENT/NAME:
Jeanie Bunton
FIRM:
Office of Speech writing -White House
DEFARTMENT/PHONE:
Fax 202-456-6218
COMMENTS:
1990 data have been revised.
**********
"
SENDER/NAME:
Francis McFaul 202-377-4423
DATE:
12/16/91
TIME:
12:12
** IF YOU DO NOT RECEIVE ALL THE PAGES INDICATED ABOVE,
PLEASE CALL (202) 377-2456
DEC-16-91
MON
12:12
P.02
-23-
Table 5
Top 50 Partners in Total U.S. Trade in 1990
(Domestic and Foreign Merchandise, F.a.s.; General Imports, Customs; Millions of Dollars)
1984
1985
1986
1987
1988
1989
1990
Canada
118,255
122,293
123,764
130,899
153,020
166,762
Japan
175,238
80,710
91,414
108,793
112,824
127,244
Mexico
138,046
138,240
30,012
32,767
29,693
34,853
43,888
52,144
Germany
58,548
26,365
29,453
35,839
38,956
40,929
United Kingdom
41,927
46,946
26,701
26,210
26,814
31,455
36,341
Taiwan
39,156
43,772
19,771
21,096
25,315
32,034
36,843
Kores, South
35,647
34,149
15,335
15,969
19,084
25,086
31,337
France
33,195
32,892
14,150
15,578
17,344
18,673
22,478
Italy
24,593
26,776
12,309
14,299
15,446
16,569
18,351
China
19,148
20,711
6,069
7,717
7,877
9,791
13,532
Netherlands
17,745
20,031
11,623
11,350
11,913
12,180
14,675
16,174
Singapore
17,988
7,654
7,735
8,105
10,254
13,741
16,347
17,859
Hong Kong
11,329
11,182
11,921
13,837
15,925
16,014
Belgium/Luxembourg
16,328
8,440
8,305
9,405
10,360
11,904
13,077
Saudi Arabia
15,027
9,305
6,381
7,061
7,806
9,396
10,731
Brezil
14,009
10,261
10,666
10,698
11,905
13,561
13,214
Australia
13,038
7,468
8,277
8,179
8,500
10,514
12,204
12,967
Venezuela
9,920
9,936
8,238
9,165
9,769
9,796
Switzerland
12,554
5,679
5,764
8,229
7,400
8,808
9,626
10,396
Melaysia
4,576
3,839
4,150
4,818
5,833
7,614
8,697
Spain
4,952
5,039
5,317
5,987
7,419
8,113
8,518
Sweden
4,786
6,049
6,290
6,652
7,684
8,030
Theiland
8,335
2,439
2,277
2,684
3,764
5,172
6,668
8,285
Nigeria
3,085
3,678
2,939
3,869
3,635
5,774
6,529
Israel (incl Gazo)
3,945
4,702
4,657
5,770
6,216
6,067
6,513
Philippines
4,196
3,524
3,336
3,863
4,545
5,270
5,854
India
4,121
3,937
3,820
3,992
5,440
5,772
5,677
Indonesia
6,678
5,364
4,257
4,161
4,209
4,775
5,240
Colombia
2,596
2,798
3,193
3,644
3,915
4,479
5,213
Ireland
2,198
2,243
2,437
2,922
3,558
4,048
4,285
USSR
3,838
2,831
1,806
1,904
3,355
4,993
4,153
Iraq
788
901
968
1,178
2,644
3,584
3,746
Algeria
4,158
2,763
2,284
2,425
2,544
2,585
3,593
Turkey
1,682
1,896
1,793
2,304
2,829
3,375
3,433
South Africa
4,753
3,276
3,523
2,627
3,200
3,190
3,433
Dominican Republic
1,663
1,724
2,006
2,305
2,769
3,291
3,405
Norway
2,763
1,830
2,016
2,246
2,375
3,028
3,128
Chile
1,586
1,428
1,644
1,777
2,247
2,707
2,993
Denmark
2,023
2,370
2,515
2,671
2,633
2,586
2,990
Argentina
1,855
1,791
1,799
2,170
2,490
2,430
2,688
Egypt
2,874
2,402
2,093
2,675
2,553
2,838
2,645
Finland
1,132
1,333
1,288
1,514
1,964
2,339
2,392
New Zealand
1,492
1,584
1,856
1,864
2,101
2,326
2,333
Austria
1,089
1,275
1,328
1,478
1,821
2,008
2,189
Angola
1,113
1,191
764
1,388
1,317
2,025
2,108
Ecuador
2,350
2,428
2,065
1,887
1,909
2,117
2,058
Costa Rica
895
923
1,124
1,251
1,470
1,844
2,000
United Arab Emirates
1,882
1,267
849
1,283
1,284
1,922
1,887
Portugal
1,438
1,241
1,190
1,246
1,442
1,724
1,755
Pakistan
1,337
1,315
1,155
1,138
1,549
1,657
1,752
DEC-16-91 MON 12:12
P.03
a -24-
Table 6
Top 50 Purchasers of U.S. Exports in 1990
(Domestic and Foreign Merchandise, F.a.s.; Millions of Dollars)
1984
1985
1986
1987
1988
1989
1990
Canada
51,777
53,287
55,512
59,814
71,622
Japan
78,809
83,866
23,575
22,631
26,882
28,249
37,725
Mexico
44,494
48,585
11,992
13,635
12,392
14,582
20,628
United Kingdom,
24,982
28,375
12,210
11,273
11,418
14,114
18,364
Germany
20,837
23,484
9,221
9,123
10,628
11,802
14,457
16,956
Korea, South
18,752
5,983
5,956
6,355
8,099
11,232
France
13,459
14,399
6,037
6,096
7,216
7,943
9,970
Netherlands
11,579
13,652
7,554
7,269
7,847
8,217
10,117
11,364
Taiwan
13,016
5,003
4,700
5,524
7,413
12,129
11,335
Belgium/Luxembourg
11,482
5,301
4,918
5,399
6,189
7,410
8,522
Australia
10,448
4,793
5,441
5,551
5,495
6,973
8,331
Singapore
8,535
3,675
3,476
3,380
4,053
5,768
7,344
Italy
8,019
4,375
4,625
4,838
5,530
6,775
7,215
Hong Kong
7,987
3,062
2,786
3,030
3,983
5,687
6,291
6,840
Spain
2,561
2,524
2,615
3,148
4,215
4,796
Brazil
5,208
2,640
3,140
3,885
4,040
4,266
4,804
Switzerland
5,062
2,562
2,288
2,976
3,151
4,196
4,911
China
4,944
3,004
3,856
3,106
3,497
5,021
5,755
4,807
Saudi Arabia
5,564
4,474
3,449
3,373
3,776
3,574
4,035
Malaysia
1,856
1,539
1,730
1,897
2,141
2,870
3,425
Sweden
1,542
1,925
1,871
1,894
2,700
3,138
3,404
Israel (Incl Gaza)
2,194
2,580
2,239
3,130
3,244
2,828
3,201
Venezuela
3,377
3,399
3,141
3,586
4,612
3,025
3,107
USSR
3,284
2,423
1,248
1,480
2,769
4,284
3,088
Thailand
1,113
849
936
1,544
1,962
2,288
2,991
Ireland
1,354
1,342
1,434
1,810
2,183
2,483
2,539
India
1,570
1,642
1,536
1,463
2,500
2,458
2,486
Philippines
1,766
1,379
1,363
1,599
1,878
2,202
2,472
Turkey
1,249
1,295
1,160
1,482
1,850
2,003
2,253
Egypt
2,704
2,323
1,982
2,210
2,332
2,612
2,249
Colombia
1,450
1,468
1,319
1,412
1,754
1,924
2,038
Indonesia
1,216
795
946
767
1,059
1,247
1,897
South Africa
2,265
1,205
1,158
1,281
1,688
1,659
1,732
Chile
805
682
623
796
1,066
1,414
1,672
Dominican Republic
646
742
921
1,142
1,359
1,645
1,658
Denmark
605
706
758
893
969
1,051
1,311
Norway
859
666
937
842
929
1,037
1,281
Argentina
900
721
944
1,090
1,054
1,039
1,179
Pekistan
1,092
1,042
830
733
1,090
1,134
1,143
New Zealand
708
727
881
819
940
1,117
1,133
Finland
350
438
381
514
761
969
1,126
United Arab Emirates
695
596
493
619
705
1,238
998
Costa Rice
423
422
483
582
696
882
992
Algeria
520
430
453
426
730
756
948
Jamaica
495
404
457
601
762
1,006
944
Portugel
961
695
638
581
749
925
922
Austria
375
441
464
549
746
873
873
Panama
757
675
711
742
637
723
867
Bahamas
555
786
761
782
740
772
801
Peru
751
496
693
814
795
695
778
DEC-16-91 MON 12:13
P.04
= 25
Table 7
Top 50 Suppliers of U.S. Imports in 1990
(General Imports, Customs; Millions of Dollars)
1984
1985
1986
1987
1988
1989
1990
Canada
66,478
69,006
68,253
71,085
81,398
Japan
87,953
91,372
57,135
68,783
81,911
84,575
89,519
Mexico
93,553
89,655
18,020
19,132
17,302
20,271
23,260
27,162
Germany
30,172
17,145
20,331
25,210
27,155
26,472
Taiwan
24,971
28,194
14,768
16,396
19,791
24,622
24,714
United Kingdom
24,313
22,667
14,492
14,937
15,396
17,341
17,976
Korea, South
18,319
20,288
9,353
10,013
12,729
16,987
20,105
China
19,737
18,493
3,065
3,862
4,771
6,293
8,511
11,990
France
15,224
8,113
9,482
10,129
10,730
12,508
Italy
13,014
13,124
7,934
9,674
10,607
11,040
11,576
11,933
Saudi Arabia
12,723
3,741
1,907
3,612
4,433
5,620
7,157
Singapore
9,974
3,979
4,260
4,725
6,201
7,973
9,003
Hong Kong
9,839
8,266
8,396
8,891
9,854
10,238
9,722
Venezuela
9,488
6,543
6,537
5,097
5,579
5,157
6,771
Brazil
9,447
7,621
7,526
6,813
7,865
9,294
8,410
Nigeria
7,976
2,508
3,002
2,530
3,573
3,278
5,284
Switzerland
5,977
3,117
3,476
5,253
4,249
4,611
4,714
Thailand
5,452
1,326
1,428
1,748
2,220
3,210
4,379
Malaysis
5,294
2,721
2,300
2,421
2,921
3,692
4,744
5,272
Netherlands
4,069
4,081
4,066
3,964
4,559
4,810
4,972
Sweden
3,244
4,124
4,419
4,758
4,985
4,892
4,931
Belgium/Luxembourg
3,139
3,387
4,006
4,171
4,493
4,555
4,578
Australia
2,675
2,836
2,628
3,006
3,541
3,873
4,433
Philippines
2,430
2,145
1,972
2,264
2,666
3,068
3,383
Indonesia
5,461
4,569
3,312
3,394
3,150
3,529
3,343
Israel (incl Goza)
1,751
2,123
2,418
2,639
2,972
3,239
3,313
Spain
2,391
2,515
2,702
2,839
3,204
3,317
3,310
India
2,551
2,295
2,283
2,529
2,940
3,314
3,191
Colombia
1,146
1,331
1,874
2,232
2,161
2,555
3,175
Iraq
124
474
440
495
1,488
2,415
3,015
Algeria
3,638
2,333
1,831
1,999
1,814
1,829
2,645
Angola
1,010
1,053
677
1,294
1,216
1,928
1,958
Norway
1,904
1,164
1,079
1,404
1,446
1,991
1,848
Dominican Republic
1,017
982
1,085
1,163
1,410
1,646
1,747
Ireland
844
901
1,003
1,112
1,375
1,566
1,745
South Africa
2,488
2,071
2,364
1,345
1,513
1,531
1,701
Denmark
1,418
1,665
1,757
1,779
1,664
1,535
1,678
Argentina
954
1,069
856
1,080
1,436
1,391
1,509
Ecuador
1,695
1,837
1,464
1,266
1,228
1,474
1,377
Chile
781
745
820
981
1,181
1,292
1,321
Austria
714
834
864
929
1,074
1,135
1,316
Finland
782
895
908
999
1,203
1,370
1,267
New Zealand
784
857
975
1,046
1,161
1,209
1,199
Turkey
433
602
633
821
979
1,371
1,180
USSR
554
409
558
425
586
709
1,065
Trinidad & Tobago
1,360
1,258
793
815
719
768
1,016
Costa Rice
473
501
641
670
774
962
1,008
United Arab Emirates
1,187
671
356
664
579
684
889
Portugal
477
546
552
664
693
800
833
Peru
1,342
1,087
803
769
658
814
803
DEC-16-91 MON 12:14
P.05
- 180 -
All itoms in U.S. total exports (F.a.s. value) to Korea, South
(Thousands of dollars)
SITC FOY 3 commodity
1986
1987
I
1988
1989
1990
0--Food and live animals
:
1--Boverages and tobacco
444,213
:
I
667,220
:
858,351
;
2--Crude matorials, inodible, except fuols
12,045
1,222,952
:
8,100
1,197,035
$
67,904
3--Mineral fuols, lubricants and related materials
1,611,445
120,452
2,093,736
119,194
2,692,734
238,382
2,928,684
4--Animal and vogetable oils, fats and waxes
331,709
2,979,668
308,244
345,790
728,339
5--Chomicals and rolated products, n.o.s.
23,366
35,812
45,198
6--Manufactured goods classified chiefly by material
751,090
43,271
986,119
1,383,628
51,852
I
404,597
1,644,963
483,796
1,717,714
7--Machingry and transport equipment
798,061
8--Miscellaneous manufactured articlos
2,034,018
1,067,850
2,566,443
987,412
%
3,813,800
9--Commodities & transact not class elscwhore in sitc:
339,591
5,163,704
408,641
5,362,152
562,163
50,469
811,735
83,091
1,081,760
101,331
128,628
173,594
Note: Data bofore 1989 are estimated.
Compiled from official statistics of the U.S. Department of Commerce.
Commodit trade data before 1989 exclude special catogory exports.
Refer to the bilatoral total trade tables for the data on total trade by country and region,
Loading itoms in U.S. total exports (F.a.s. value) to Korea, South
(Thousands of dollars)
$
1986
SITC rev 3 commodity
1987
1988
1989
1990
1
776--Thermionic, cold cathoda, photocathode valves etc.
485,651
792--Aircraft as associated equipmts speccrft vehi & pts:
597,338
797,825
815,870
1,011,333
272,543
211-Hidos & skins (except furskins), raw
315,534
767,690
1,155,789
467,587
918,008
044--Maize (not including sweet corn) unmilled
600,690
669,906
700,074
129,877
758,574
263--Cotton textile fibers
356,490 :
429,920
641,024
604,234
155,860
334--0il (not crude) from petrol & bitum minorals etc
313,890
445,495
429,260
481,651
67,914
134,032
$
874--Mcasuring/chocking/analysing & contr inst&appt nos:
102,480
91,671
167,500
456,147
189,804
282--Ferrous waste & scraps rmltng iron or stool ingots:
229,525 :
314,346
412,251
247,171
213,550
251--Pulp and waste paper
271,158
406,760
I
410,638
227,725
307,104
752--Automatic data process machs a units thereof
397,069
459,336
1
405,095
135,590
158,397
247--Wood in the rough or roughly squared
235,749
342,158
387,175
105,995
158,388
764--Telocommunications equipment, n.o.s. as pts,
247,050
274,892
287,126
140,523
174,013
728--Machry etc spocialized for particula industries nos:
214,921
211,380
280,530
120,916
154,022
759--Ports etc for office mach & auto data process mach:
247,916
461,540
270,445
126,633
188,031
391--Arms and ammunition
282,502
298,201
260,743
2,924
2,790
S11-Hydrocarbons nos & specified derivatives
4,790
144,675
252,179
139,030
141,064
253,164
2
741--Hoatng & coolng equipmnt and pts thorcof,
319,982
248,045
55,229
90,890
041-Whoat (including spelt) and moslin, unmilled
99,899
182,836
219,417
237,984
211,216
222-0il seeds/oleaginous frt for extr soft fix vog oil:
283,266
297,903
216,230
206,104
232,220
260,148
743--Pumps, air or other gas compressors and fans
220,025
196,601
28,569
43,686
76,442
321--Coal, pulvorized or not, but not agglomorated
118,259
187,214
152,305
167,174
167,701
778--Electrical machinory and apparatus, n.o.s
171,786
185,664
45,097
62,940
79,344
288--Nenferrous base metal waste & scrap, n.o.s
174,404
176,795
45,142
62,859
147,620
714--Engs and motors, nonelect a pts, n.o.s
140,816
151,890
66,567
36,174
71,109
723--Civil engineering & contractors' plant & equipment
82,298
144,034
76,833
67,146
71,311
784--Parts and accessories of motor vehicles, etc
118,397
I
136,100
21,262
74,919
70,619
514--Nitrogen-function compounds
102,963
134,858
59,825
96,149
133,992
598--Miscellanoous chemical products, n.e.s
137,102
126,051
14,326
20,328
26,928
011--Moat of bovine animals, fresh, chilled or frozen
100,199
119,676
1,936
1,513
25,058
513--Carboxylic acids etc holides etc a derivatives
78,814
116,664
106,700
127,373
168,244
575-Plastics, n.c.s., in primary forms
149,533
115,102
54,282
93,495
100,653
611--Loather
96,961
113,947
54,662
55,325
70,727
994--Est. low value shps canadian low value and
65,428
111,897
15,379
37,821
42,588
713--Internal combust piston engs, and pts, n.o.s
67,443
111,651
24,422
28,386
43,285
525--Radicactive and associated matorials
59,225
108,940
2,242
8,862
641--Papor and paperboard
16,613
56,170
104,926
61,608
67,432
90,263
122--Tobacco, mfg whether containing tobacco substituto:
102,137
102,962
5,645
6,163
56,448
684-Aluminum
107,466
101,344
25,297
31,826
126,064
114,745
772--Elecricl apparat for switchg or protects olco circ:
88,330
66,111
78,200
115,960
85,708
034--Fish, fresh (live or doad), chilled or frozen
86,519
21,642
23,196
20,311
39,561
83,161
Note: Data before 1989 are estimated.
Compiled from official statistics of the U.S. Department of Commerce.
Commodity trade data before 1989 exclude special category exports.
Refer to the bilatoral total trade tobles for the data on total trade by country and region.
Top 40 commodities sorted by total exports, F.a.s. value in 1990.
DEC-16-91 MON 12:15
P.06
- 181 -
All items in U.S. general imports (customs value) from Korea, South
(Thousands of dollars)
1986
SITC rev 3 commodity
1987
1988
1989
1990
-
D--Food and live animals
180,191
1--Bevorages and tobacco
294,564
263,264
188,332
176,060
6,662
2--Crude matorials, inadible, except fuels
17,224
14,950
6,171
X
13,286
5,449
3--Minoral fuals, lubricants and rolated matoriala
17,954
26,951
51,637
47,561
4--Animal and vegetable oils, fats and waxes
42,634
29,197
14,606
28,746
74
9,572
5--Chemicals and related products, n.o.s
428
478
1,385
134,746
947
6--Manufactured goods classified chiefly by matorial
152,334
187,568
184,883
1,840,400
252,527
7--Machinery and transport equipment
2,031,539
2,359,488
2,047,807
4,537,304
2,124,898
8-Miscollanoous manufactured articles
7,075,728
9,101,804
8,860,493
5,897,461
7,544,678
9--Commodities & transact not class elsewhore in sitc:
7,266,554
8,090,586
8,234,725
76,481
8,187,132
101,420
129,378
137,691
144,339
Note: Data before 1989 are estimated.
Compiled from official statistics of the U.S. Department of Commorce.
Refer to the bilatoral total trade tables for the data on total trade by country and region.
Leading items in U.S. general imports (customs value) from Koroa, South
(Thousands of dollars)
1986
1987
SITC rev 3 commodity
1988
1989
1990
651--Footwoar
1,509,139
1,774,695
776--Thermionic, cold cathode, photocathoda valves etc.
2,325,718
2,182,898
648,034
2,573,003
781--Motor cars & oth motor vehicles
805,710
1,390,651
1,851,948
:
798,671
1,798,590
752--Automatic data process machs 2 units thereof
2,062,202
2,486,562
1,593,997
388,294
1,125,622
848--Apparol a cl acc exe textiles headgeer, all mater1:
617,159
924,439
1,091,002
1,053,031
447,640
651,994
845--Articlos of apparel of textilo fabries nos
819,278
1,035,978
774,761
1,008,942
889,582
542--Nomon/girls coats, capos etc, tox fabric, not knit:
785,073
963,757
728,480
459,972
544,471
764--Tolocommunications equipment, n.o.s. & pts, n.o.s.:
609,889
595,867
659,079
577,790
662,909
394--Baby carriages, toys, games and sporting goods
701,896
686,265
698,373
608,640
947,676
841--Mon's or boy's coats, jackets etc, text, not knit.
825,471
714,828
588,063
552,516
763--Sound recorders, tv recordors, recording modia unr:
611,631
641,380
692,061
585,624
119,404
202,695
B31--Trunks, suitcasos, vanity cases, briafcases, etc
234,146
695,136
464,099
331,346
436,175
762--Rad:obroadeant receivers
448,016
450,212
446,355
271,298
436,969
598--Musical instruments and parts, records, tapas etc.
540,621
541,486
241,877
427,919
244,465
775-Househld type elec & nonolec equipment, n.e.s
329,357
360,818
357,344
340,004
425,018
673--Iron & nonalloy stool flat-roll prod, not clad etc:
437,919
432,985
344,415
170,198
160,839
625--Rubber tires, inter treads, tire flaps & inn tubes:
162,781
123,146
245,825
186,487
185,814
553-Wov fabries, mm text mat (not narrow or spec fab).
196,622
196,980
229,636
191,452
203,443
99--Miscallancous manufactured articlos, n.o.s
241,577
213,706
227,691
103,550
139,458
744--Mochanical handlng equipmt, 2 pts thereof,
192,366
210,229
225,658
60,654
100,129
759--Parts etc for office mach & auto data process mach:
170,131
266,511
219,554
68,511
70,863
761--Talovision receivers
122,937
200,231
208,573
573,537
723,215
778--Eloctricel machinery and apparatus, n.o.s
713,611
296,715
207,459
198,348
263,472
3
$79--Iron & steel tubes, pipes & hol profiles, fittings:
305,197
224,655
205,864
197,303
162,338
I
697--Housohold equipment of base metal,
265,576
197,209
195,262
112,620
141,170
178,183
397--Jowolry, goldsmiths' & silversmiths' wares etc
178,012
158,687
83,186
115,978
$93-Articles, nes of plastics
126,068
138,912
155,311
68,253
106,298
138,516
194-Nails, scrows, nuts etc, iron, stool, copp, alumin:
141,352
150,752
111,883
127,276
133,781
344-Women's or girls' coats, capes etc, toxtile, Kni
124,742
134,005
147,102 1
157,003
141,562
784-Parts and accessories of motor vehicles, etc.
124,678
122,243
46,895
65,086
82,301
31-Special transactions & commod not classif by kind.
94,397
111,456
47,646
65,322
89,318
199--Manufactures of base metal, n.e.s
102,269
104,059
84,470
104,611
51--Offico machines
123,296
93,294
89,668
53,633
79,521
58--Made-up articles of textile matorials,
142,393
118,390
89,569
n.a.s
83,520
101,827
88,713
93--Wire products (excl insulat elect) & foncng grills:
77,881
89,484
74,017
75,559
174--Iron & na stool flat-rolled products, clad, etc
100,784
102,660
87,006
78,445
89,837
71,674
(41--Heatng & coolng equipmnt and pts thoreof,
57,980
84,600
52,795
91,219
153,212
72--Elecricl apparat for switchg or protoctg cloc circ:
58,077
83,395
73,287
78,206
108,827
143--Mon's or boys coats, jackets otc, text, knitted
87,965
82,046
85,278
109,501
101,379
82--Plates, shoets, film, foil & strip of plastics
115,990
79,422
36,283
45,073
73,865
73,224
76,441
Note: Data before 1989 are estimated.
Compiled from official statistics of the U.S. Department of Commerco.
Rofer to the bilatoral total trade tables for the data on total trade by country and region.
Top 40 commodities sorted by general imports, customs value in 1990.
THEMES FOR ASIA TRIP
Overall
America is an Asia-Pacific partner for the long haul
(America will not retreat into isolationism/protectionism)
--
Economically
--
Politically
--
Security
As outlined in the President's Asia Society speech, there
are six keys to America's long-term vision for the Asia
Pacific. The trip will highlight each of these:
I.
PROGRESSIVE TRADE LIBERALIZATION
Aggressively pursue Uruguay Round Settlement (if still
pending) (Japan, Korea, Australia)
--
Promote APEC (All countries)
--
Push access for American products and services (Japan,
Korea)
:
Encourage American investment in the region (Singapore,
Japan, Korea)
II. SECURITY COOPERATION
--
Maintain pressure on DPRK nuclear program. Stress need for
united action against DPRK nuclear program (all countries;
encourage Singapore to get ASEAN action during upcoming
ASEAN Summit)
--
U.S. will restructure, but remain engaged
--
Continued air and naval presence at current levels in
Japan for the foreseeable future
--
Korea presence dependent on progress for lasting peace
on the peninsula; however, envision long-term air
presence for regional deterrence into the future
--
Singapore agreement as model for access arrangements of
the future in other parts of the region
III. A SHARED COMMITMENT TO DEMOCRACY AND HUMAN RIGHTS
--
Continue pressure on ROK (last visit by Pres. Bush made a
difference)
--
Lay out position on Vietnam (Singapore)
--
Highlight China if necessary
2
IV EDUCATIONAL AND SCIENTIFIC INNOVATION
--
Show link between domestic agenda and foreign policy
-- Highlight S&T progress (all countries)
--
Examine educational differences that we can learn from
(Japan, Korea)
V
RESPECT FOR THE ENVIRONMENT
--
Note progress made and areas for improvement (Japan, Korea)
--
Announce SE Asia initiative (if ready)
VI
APPRECIATION OF DISTINCT CULTURAL HERITAGES
--
Announce various cultural exchange initiatives (all
countries)
ROH'S TRACK RECORD
Korean Overseas Information Service/Seoul, Korea
February 1991
Political Development
censorship was abolished with the repeal of the
Basic Press Law. The system of requiring the regis-
The Administration of President Roh Tae Woo
tration of media was liberalized, leading to the
came into being on February 25, 1988. This event
mushrooming of increasingly diverse print and
marked the establishment of genuine democracy
broadcast media.
in the Republic of Korea for the first time since
Measures were taken also to deregulate various
it was founded in 1948. Furthermore, the Roh Ad-
other areas of national life with a view to promot-
ministration was brought into being through the
ing private initiative. Campus autonomy was in-
first peaceful transfer of power in the 40-year his-
troduced and restrictions on overseas travel lifted.
tory of the Republic.
Creative activities of artists and writers were freed
Roh Tae Woo was elected President through
from artificial constraints. Government interven-
the first direct popular vote in 16 years. This ended
tion in the private sector of the economy was
perennial domestic and international controversy
scaled down. In 1990 alone, laws and decrees were
over the legitimacy of the Republic of Korea
revised to end or ease government control of 576
Government and set the stage for the successful
categories of economic and business activities.
hosting of the Seoul Olympics and the effective
The Administration exercized moderation and
implementation of a northern diplomacy aimed
restraint in dealing with disturbances accompany-
at opening and expanding ties with the socialist
ing the transition from authoritarianism to
world.
democracy. It patiently waited for the emergence
A priority task of the Roh Administration upon
of a public awareness and consensus regarding
its inauguration was to eliminate all vestiges of past
the need for a democratic order based on self-
authoritarian rule, while promoting the basic rights
regulation. As a result, political and social stabili-
of the people. Sweeping amnesties and restoration
ty has come to prevail with spontaneous public
of political rights were granted to large numbers of
involvement.
"political prisoners" and "purged politicians." A
In early 1990, three major political parties
total of 1,673 laws and decrees-about 50 percent
merged into one large governing party in what
of the total-were revised or repealed to do away
may be termed an honorable revolution. This end-
with undemocratic provisions and restrictions on
ed the governmental lethargy caused by a legisla-
basic rights. Thus amended were 291 laws, 733
tive logjam due to a minority ruling party having
presidential decrees, 578 prime ministerial decrees
to deal with three disparate opposition groups with
and 71 treaties.
a combined majority in the National Assembly.
A particularly notable development has been the
Thus the stage was set for constructive politics
realization of unrestricted freedom of the press and
based on new thinking about the future of the na-
speech in keeping with the Declaration of
tion in an increasingly interdependent and shrink-
Democratic Reforms on June 29, 1987, which
ing world. The triparty merger represented a major
swiftly led to the demise of authoritarianism. Press
political realignment designed to propel the coun-
Rise in News Media
try into the 21st century and toward the goal of
national unification.
Number as of
Number as of
Media
Increase
June 29, 1987
end of 1990
Also in keeping with the promise made in the
June 29, 1987 Declaration and again in the cam-
Daily newspapers
28
81
53
paign platform of Roh Tae Woo, legislative and
Broadcast media
5
10
5
administrative steps have been taken to introduce
Weeklies and monthlies
1,404
3,488
2,084
local autonomy on a phased basis. Local coun-
cils are to be elected during the first half of 1991,
Dates of Opening Diplomatic Ties
with the heads of local governments to be elected
With East Bloc Countries
about a year later. To increase the financial self-
sufficiency of local governing bodies, a cigarette
Agreement to
ROK embassy
Embassy in
excise tax and other new taxes have been created
Countries
open ties signed
opened
Seoul opened
as an additional source of revenue for them, along
with a system providing for grants-in-aid from the
Hungary
February 1989
February 1989
February 1989
Poland
November 1989
November 1989
National Government. Much of the authority and
January 1990
Yugoslavia
December 1989
February 1990
March 1990
power of the National Government has also been
Czechoslovakia
March 1990
June 1990
developed to local governments.
Bulgaria
March 1990
June 1990
September 1990
Rumania
March 1990
June 1990
July 1990
External Relations
Mongolia
March 1990
June 1990
February 1991
USSR
September 1990
October 1990
December 1990
President Roh Tae Woo has emerged as a
regional and international leader of stature, ad-
development and greater prosperity.
vancing the Republic of Korea towards the world's
center stage. Under his presidency, the Republic
In consequence, increasing trade and other
successfully staged the largest Olympic Games
forms of exchanges and cooperation have come
ever. The nation has achieved a speedy but solid
to be conducted with all socialist countries, except
democratization, while maintaining rapid econom-
for Cuba and one or two others. This has opened
ic growth leading to increasing prosperity. Presi-
up, among other things, new, growing markets for
dent Roh has successfully endeavored to secure
the Republic and added new members to the list
for the Republic an international position com-
of its economic and business partners. In fact,
mensurate with its expanding national clout. For
trade with the East bloc jumped from US$3.7 bil-
lion in 1988 to US$5.6 billion in 1990.
example, he delivered major speeches addressed
to international audiences at the following fora:
Full diplomatic relations were established with
before the General Assembly of the United Na-
the Soviet Union-a longtime major ally of North
tions on October 19, 1988; before a joint session
Korea-in September 1990. On the heels of this,
of the United States Congress on October 18,
Presidents Roh and Gorbachev jointly issued a
1989; before the Hungarian parliament on
"Moscow Declaration" of agreement to develop
November 23, 1989; before the Japanese Diet on
ties of constructive bilateral cooperation, includ-
May 25, 1990, and at Moscow University on De-
ing mutual efforts toward "the relaxation of ten-
cember 14, 1990.
sion and the establishment of the climate of trust
for the eventual reunification on the Korean
In the Seoul Olympics in 1988, the East and the
Peninsula."
West were brought together for the first time in
12 years. It was rated as the largest and best Olym-
These developments have a greater potential to
piad ever and was regarded by many as the most
break the stalemate on the Korean Peninsula than
successful world festival of peace and harmony.
anything else that has happened since the Korean
Through the 1988 Olympics, the world had a good
War of 1950-53, for they signaled the extension
look at the Republic of Korea as a democratic,
of the Post-Cold War international order into
prosperous, modern and peaceful country. This
Northeast Asia with the aim of promoting regional
offered a model for the reforms and openness in
peace. This is expected to nudge the hardline Com-
Eastern Europe, which in turn led to the emer-
munist regime in the North into initiating reform
gence of a new world order of detente and cooper-
and openness, leading to improved relations be-
ation. This subsequently helped advance the goals
tween the two divided parts of Korea.
of the Republic's northern policy.
In May 1990, President Roh visited Japan as
The policy of cultivating ties with East bloc
the first chief executive of a democratic Korean
countries was designed chiefly to create an inter-
Government with universally acknowledged
national environment conducive to both unifica-
legitimacy. He also became the first Korean Presi-
tion with North Korea and continued economic
dent to speak before the Japanese Diet. He dis-
Inter-Korean trade has been slowly but steadi-
Through such efforts, often-bitter labor dis-
ly growing from a nearly negligible initial level in
putes, which mushroomed in the wake of the
1988.
Declaration of Democratic Reforms in mid-1987,
have greatly decreased in both frequency and in-
tensity. Labor disputes numbered 1,770 in 1988
Economy, Infrastructure, Environment
and slightly decreased to 1,585 in 1989 but
dropped to only 316 in 1990. The fact that wages
In light of the fact that speculative activities were
nearly doubled between 1987 and 1990 as the result
sending land and housing prices skyrocketing,
of newly bursting unionism has also contributed
legislative program was carried out to enforce a
significantly to increasing industrial peace.
concept of land as public property and to tax ex-
A minimum wage law was enacted in 1988,
cessive or idle land holdings more heavily. Steps
along with legislation to promote equal employ-
were also taken to ban business corporations from
ment opportunities for both sexes.
holding or acquiring lands not essential to their
intrinsic business operations. Government-supported
Standard working hours per week were reduced
projects were implemented to develop 150 hous-
from 48 up until 1988 to 46 in 1989 and further
ing tracts totaling 228 million square meters and
to 44 in 1990. A law for promoting the employ-
45 industrial sites totaling 191 million square
ment of the physically handicapped went into ef-
fect in 1990.
meters to help stabilize land prices.
The Government drastically deregulated and
In view of the fact that many Korean workers
decontrolled business activities to promote private
have difficulty finding affordable housing, a pro-
gram was initiated to build 250,000 low-cost hous-
initiative and entrepreneurship, as noted earlier.
During 1990 alone, laws and executive decrees
ing units for them. In 1990, the initial year, 60,000
units were completed. In addition, 4,225 rental
were streamlined to free 576 categories of econom-
ic activities from unwarranted Government con-
apartments were built for unmarried female
workers.
trol. In particular, deregulation measures were
taken to make it easier to newly enter 19 selected
These are part of a national program to build
industries, including alcoholic beverage manufac-
two million housing units between 1988 and 1992
turing and the information and telecommunica-
in order to ease serious housing shortages in
tions businesses, with a view to promoting
Korean cities. By comparison, 1.55 million units
competition.
were constructed between 1981 and 1987.
Labor laws were revised to promote the rights
Under the new, accelerated housing program,
of workers to organize, collectively bargain and
the number of units built increased from 320,000
strike. As a result, the number of labor unions
in 1988, to 460,000 in 1989 and further to an es-
in the country jumped from 4,086 in December
timated 750,000 in 1990. This program incor-
1987 to 7,883 in June 1990, a 93-percent rise, while
porates projects to create five new towns around
their membership swelled from 1.27 million to just
Seoul. Special emphasis is placed on providing
under 2 million, a 52-percent increase.
more adequate shelter to low-income families, es-
pecially by building 250,000 rental apartments, still
In view of the fact that the sudden removal of
a rarity in Korea, between 1989 and 1992. In ad-
restrictions on unionism entailed difficulties in con-
dition, measures are being taken to encourage pri-
ducting yet unfamiliar collective bargaining, the
vate construction of small-scale multifamily
Administration sponsored educational courses for
housing units in urban areas as part of efforts to
union leaders and labor relations managers. About
stabilize rent, which has sharply increased in re-
110,000 persons attended such courses between
cent years. A total of 380,000 such units were built
1988 and 1990. Roundtable discussions between
between 1988 and 1990. Assistance will also be
labor and management on the national and region-
provided to improve existing housing for low-
al levels were energized to promote mutual under-
income families.
standing.
The budget for promoting social development,
with focus on the welfare of the poor, was in-
ly half in Government and half in private funds,
creased from 4.43 trillion won (US$6.3 billion) in
is scheduled to be invested in antipollution projects
1987 to 7.43 trillion won (US$10.6 billion) in 1990.
by the year 2000.
The expanded 1990 budget provides for, among
other things, monthly subsistence aid of 39,000
To expand and improve infrastructure in keep-
won (US$56) to each needy incapacitated person,
ing with the rapid economic growth of the nation,
educational funds to 418,000 children of poor fa-
a special infrastructure planning team was creat-
milies and vocational training for 15,000 persons,
ed at Chong Wa Dae (the Presidential office and
and the establishment of 419 day care centers.
residence) in January 1991. One trillion won
(US$1.4 billion) in surplus funds in the Govern-
The income tax exemption point for wage earn-
ment budget is being invested in such projects as
ers has been hiked, while a more sharply progres-
a second Seoul-Inch'on expressway, the widening
sive taxation has been applied to the upper income
of the Seoul-Pusan expressway from four lanes
brackets. Special tax deductions have been newly
to six, the improvement of over 60 feeder roads
created on expanded for employees. Credit facili-
and the expansion and improvement of all-
ties for ordinary citizens have been enlarged to
important Pusan and Inch'on ports, especially to
help them meet emergency financial requirements,
enlarge their container facilities. A new interna-
start small businesses, deposit key money for liv-
tional airport will be constructed to serve Seoul.
ing quarters or educate their children. Bank loans
Communications networks will be expanded and
allocated for such purposes totaled 1.6 trillion won
improved, with a view especially to add 5.9 mil-
(US$2.2 billion) in 1990.
lion telephone circuits. An optical fiber cable was
A national medical insurance system was in-
laid between the island province of Cheju-do and
troduced on a phased basis and came to cover the
the mainland for more efficient and expanded
entire population in 1989, whereas only 61 per-
communications.
cent of the population benefited from the system
To ensure a steady supply of energy to meet
in 1987. A national pension fund was created, with
the growing requirements of the nation, the emer-
4.61 million employees of 63,000 workplaces join-
gency oil stockpile was increased from 31 million
ing it by the end of 1990. Eligibility to join the
barrels in 1987 to 38 million barrels in 1988. Elec-
fund will be progressively expanded, with the goal
tric power generating capacity of the nation was
of benefiting the entire population by the end of
upped to 21 million kilowatts in 1989 from 19
the 1990s.
million kilowatts in 1987.
Environmental protection has been yet another
As the combined result of all such development
priority of the Roh Administration. The Office
efforts, the Korean economy has managed to con-
of Environment was elevated in status to the
tinue to grow at a rapid average rate through the
Ministry of Environment in January 1990 to more
öften turbulent first three years of the Roh
vigorously and effectively clean up the environ-
Presidency. Although various new external and in-
ment, in part by more closely orchestrating
ternal impediments have arisen, threatening to de-
environment-related policies of all Government
celerate growth while accelerating inflation, the
agencies. To that end, nine environment-related
Korean economy is expected to rebound strongly
laws and executive decrees have been revamped,
again before long through painful but necessary
in particular to require environmental assessment
industrial readjustments, if its past performances
prior to undertaking major development projects.
are a valid guide.
A total of 17.1 trillion won (US$20 billion), rough-
KOREA-U.S. TRADE RELATIONS
Korean Overseas Information Service/Seoul, Korea
February 1991
Status of Bilateral Trade
deficit, and which could be obtained on equal or
more favorable terms from the United States. As
By the end of the 1980s, the Korea-U.S. trad-
a result, imports of American goods rose 46 per-
ing relationship had assumed a new importance
cent in 1988, 25 percent in 1989 and 6.5 percent
for both nations. Whereas the United States has
in 1990, compared to corresponding figures for
traditionally been Korea's number one trading
the overall import growth rate of 26 percent, 19
partner, Korea has emerged as America's seventh
percent and 13.6 percent.
largest trading counterpart. Two-way trade volume
In 1989, a major package of bilateral trade ac-
cleared $36.3 billion in 1990.
cords was reached under the auspices of Section
In recent years, Korea has focused its efforts
301 of the 1988 U.S. Trade Act, and Korea has
on reducing the surplus in trade it registered with
since carried out its obligations as scheduled. The
the United States since 1982. After peaking at $9.6
agreements addressed a range of market sectors,
billion in 1987, the surplus has consistently
from agriculture to investment, and have greatly
declined, dropping to $4.7 billion in 1989 and fur-
enhanced opportunities for U.S. firms in the
ther reducing to $2.4 billion in 1990. Such rapid
Korean marketplace.
progress toward trade equilibrium is largely a result
In addition to these accords, Korea has also
of Korea's market opening policies, such as im-
port liberalization, improvement of import proce-
taken special steps to further respond to U.S. con-
cerns on such issues as tobacco, wine, telecom-
dures, enhanced protection of intellectual property
munications and civil aviation. And, while Korea
rights and accelerated market opening in the ser-
is already the second largest importer of Ameri-
vice and agricultural sectors. As a result, in 1990
can agricultural products, many items of particu-
Korea imported $16.9 billion worth of American
goods while it exported $19.4 billion to the U.S.
lar interest to the United States, such as pecans,
soybeans, have been included in the liberalization
market.
and tariff reduction schedules despite the high sen-
sitivity of Korea's agricultural sector.
Import Liberalization
Tariff Reduction
The Korean Government began to actively carry
out import liberalization in the early 1980s, gradu-
ally expanding the number and range of items
In 1984, Korea initiated a Five Year Tariff
eligible for import on an automatic approval ba-
Reduction Program, which led to a reduction in
sis. As of January 1991, the number of items sub-
the average ad valorem level from 23.7 percent
ject to import restriction was reduced to 283 and
in 1983 to 11.4 percent in 1991. The rate will fur-
the overall import liberalization ratio rose to 97.2
ther drop to 10.1 percent in 1992, 8.9 percent in
percent. In the manufacturing sector, the liberali-
1993, and to 7.9 percent in 1994, the current rate
zation ratio has reached 99.7 percent.
of most developed countries. For manufactured
goods, the average tariff rate was reduced from
From 1983 onwards, the Korean Government
22.6 percent in 1983 to 9.7 percent in 1990 and
has also been highly responsive to U.S. requests
is scheduled to fall further to 6.2 percent in 1994.
in drawing up its lists and timetables for import
The corresponding figures for agricultural tariffs
liberalization. Since 1986, Korea has also had an
are 31.4 percent in 1983, 19.9 percent in 1990 and
import diversification program in effect which has
16.6 percent in 1994. Also, in response to U.S.
identified some 290 items that are purchased from
requests, the Korean Government used its conces-
Japan, with which Korea has run a chronic trade
sionary tariff system, to further reduce tariffs on
some 1,877 items of special interest to U.S. ex-
will be lifted; business services, in which foreign
porters in 1987 and 1988 and on an additional 203
agencies in joint ventures will be permitted to hold
items in 1989.
up to a 99 percent share; telecommunications,
Effective December 1990, the Korean Govern-
wherein database and remote computing services
ment abolished the 2.5 percent Defense Tax which
will be permitted; construction, where foreign eq-
led to the decision to postpone the tariff reduc-
uity restrictions will gradually be reduced; distri-
tion plan by one year. The tax burden on imports
bution, where all restrictions will be lifted for retail
will, nonetheless, see a net reduction.
outlets under 700 sq meters; transportation, where
foreign participation in joint ventures will gradu-
ally be permitted; tourism, and financial services,
Intellectual Property Rights Protection
for which principles of national treatment and
reciprocity will be applied.
Since the mid 1980s, Korea has actively worked
In the negotiation on agriculture, Korea sharp-
to strengthen its intellectual property laws and to
ly reduced its list of non-trade concerns to help
enhance their enforcement. Five new items of
move the negotiation forward. In the textiles
legislation were enacted as part of this effort and
group, Korea supports the plan to phase out MFA
special units were formed to apprehend and prose-
restrictions by 2000. In the intellectual property
cute violators. Korea also acceded to five inter-
rights discussion, Korea has agreed to revise or
national conventions and, in consideration of a
enact legislation for the protection of trade secrets
U.S. Government request, agreed to provide spe-
and semiconductor mask works. And, on govern-
cial treatment for three categories of U.S. intellec-
ment procurement, in June 1990 Korea submit-
tual property. With the revision of the Industrial
ted its intention to accede to the GATT Code.
Property Law in September 1990, Korea's legal
framework for IPR is regarded as one of the
Korea is also cooperating with the United States
world's most comprehensive.
in multilateral negotiations for an international
steel consensus and at the OECD Working Group
VI negotiation to reform the world shipbuilding
Cooperation in the Uruguay Round
and repair industry.
Korea and the United States are also exploring
Korea has also cooperated with the United
ways to expand regional cooperation at the Asia
States in the Uruguay Round of multilateral trade
Pacific Economic Cooperation (APEC) forum.
negotiations. Korea's offer list extends to eight sec-
Launched at Canberra, in November 1989, APEC
tors of interest to the U.S.: audio-visual services,
serves as a channel to further trade and industrial
where restrictions on the import/distribution of
cooperation among the members of the Asia Pa-
motion pictures and sound and video recordings
cific region.
NORTHERN DIPLOMACY
Korean Overseas Information Service/Seoul, Korea
February 1991
By far the most significant developments in for-
War was still dominating world politics, the
eign policy in recent years has been the establish-
Republic of Korea had little appeal as a partner
ment and steady expansion of ties between the
for trade and economic cooperation.
Republic of Korea and hitherto inaccessible so-
cialist countries. Although a relationship with the
socialist world began to be sought long before the
Changing Domestic and
Sixth Republic, it was not until about a year af-
International Environment
ter the inauguration of President Roh Tae Woo
in February 1988 that breakthroughs were
The 1980s saw crucial changes conducive to a
achieved, at long last.
warming of relations with the East bloc. Above
The ice was broken with the establishment of
all, Korea's economic stature grew conspicuous-
diplomatic relations with the Republic of Hungary
ly. It has emerged as the 10th largest trading na-
in February 1989. The significance of this event
tion in the world after three decades of rapid
went far beyond the initiation of bilateral relations
economic development. Furthermore, its interna-
between the two countries, for it was symbolic of
tional reputation was enhanced enormously by the
a new era to unfold in the Republic's diplomatic
hosting of the 1988 Olympic Games and the
history.
democratization process set in motion in 1987.
These factors-combined with intensifying moves
For a long time, the post-World War II for-
within socialist countries to restructure their econ-
eign policy of the Republic of Korea generally
dealt only with the free world. In the aftermath
omies and open up to the outside world-were the
catalyst for Korea's new era of Northern
of the Korean War (1950-53) which was started
Diplomacy.
by an unprovoked invasion from Soviet aided
Communist North Korea, Communism and so-
Also by then the Sixth Republic had adopted
cialism were regarded not only as alien but dan-
Northern Diplomacy as a top priority, integrat-
gerous and threatening ideologies. This attitude,
ing it into its unification policy. President Roh
however, began to undergo subtle change as the
hinted at this linkage in his inaugural address when
early 1970s saw the Sino-American rapprochement
he said, "Improved relations with countries with
and later, as a pragmatic flexibility began to
ideologies and social systems different from ours
manifest itself in some aspects of East-West re-
will contribute to stability, peace and common
lations.
prosperity in East Asia. Such a northward
The Republic of Korea embarked on some ef-
diplomacy should also lead to the gateway of
forts to adapt itself to the more fluid world situa-
unification." The President has repeated this
tion. President Park Chung Hee's statement in
theme on many occasions but it was perhaps stated
June 1973, announcing a willingness to develop
in most detail in the "Special Declaration in the
Interest of National Self-esteem, Unification and
contacts with Communist countries, is the most
notable example; arguably this was the harbinger
Prosperity" on July 7, 1988. While outlining six
of what is now called Korea's Northern Diploma-
policies which he hoped would help create a sense
cy. The conciliatory gesture, however, was not
of national community between the two parts of
Korea, the President said, "To create an at-
reciprocated.
mosphere conducive to durable peace on the
Many reasons could be cited for the failure of
Korean Peninsula, we are willing to cooperate with
the earlier attempts at improving relations with the
North Korea in its efforts to improve relations with
East bloc countries. A primary one, however, was
countries friendly with us and in parallel with
that, at the time, apart from the fact that the Cold
this, we will continue to seek improved relations
with the Soviet Union, China and other socialist
countries came with the establishment of diplo-
countries." Thus while warmer relations with the
matic relations with Hungary in February 1989.
socialist world are, as has always been the case,
Following the exchange of embassies on Febru-
based on the expectation of economic and other
ary 1, relations between the two countries deve-
benefits to both sides, the Republic has attached
loped rapidly and in November of that year
special significance to its Northern Diplomacy be-
President Roh made an official visit to Hungary.
cause of the expected additional benefit of an in-
This was the first visit by a Korean head of state
ternational atmosphere more conducive to peace
to a East European nation. The following Novem-
and security on the Peninsula and eventual unifi-
ber, President Arpad Goncz of Hungary visited
cation with the North.
Seoul.
Poland followed. It set up a trade office in
Five Principles of Northern Diplomacy
Seoul in May 1989, about a month after South
Korea opened a similar office in Warsaw. On
Northern Diplomacy is based on five principles.
November 1 of that year, the two countries an-
First, South Korea will not seek to isolate North
nounced an agreement to establish formal diplo-
Korea, but, on the contrary, hopes that its new
matic relations. The Republic of Korea established
ties with North Korea's old friends will lead them
its embassy in Warsaw on November 27. Less than
to encourage North Korea to institute reforms and
two months later, on January 17, 1990, the Pol-
become a more responsible member of the inter-
ish embassy was opened in Seoul.
national community. Second, as already discussed,
A basic pattern has emerged in the cultivation
the South will pursue its Northern Diplomacy in
of relations with socialist countries. Following the
tandem with its unification policy. Third, both po-
initiation of academic, athletic or cultural ex-
litical and economic, as well as other non-political
changes, trade offices with consular functions are
exchanges, should be developed with socialist
opened, and some months later, full diplomatic
countries simultaneously, because without an at-
relations are established which in turn lead to a
mosphere at mutual trust created by first forging
steady increase in economic and other types of ex-
diplomatic ties, it is impossible to develop full-
changes. It was also in this way that ties were es-
fledged economic cooperation. Although the
tablished with Yugoslavia on December 28, 1989,
Republic understands that a principle of the sepa-
Bulgaria on March 23, 1990, Czechoslovakia the
ration of politics from economics has often been
following day and Romania on March 30. Alba-
applied to relations between nations without for-
nia is the only East European country not yet
mal ties, it is determined to pursue improvement
showing any apparent interest in cultivating rela-
of economic as well as political relations at the
tions with South Korea.
same time as a keystone of its Northern Policy.
Fourth, the Government will try to build a public
All along it was hoped that these countries could
concensus on the goals of its Northern Diploma-
and would help influence North Korea to end con-
frontation and improve relations with the South
cy. To this end, a number of inter-ministerial
committees have been formed to formulate and
and follow their example in instituting reforms.
coordinate policies. Fifth, the South will maintain
But it was the Soviet Union and the People's
close ties with the United States and its other tradi-
Republic of China which were seen as having the
tional friends. The South's relationship with these
greatest influence with North Korea while at the
same time offering the biggest potential markets
old friends is crucial to pursuing the Northern
for South Korean goods and services.
Policy from a position of strength, as it is impor-
tant not only in terms of national security, but also
Relations with the Soviet Union are seen in
in terms of trade and other economic activities.
Seoul as being especially important not only be-
cause of potential economic benefits-which could
Recent Achievements
be great-but because of their expected salutary
influence on national security. The Soviet Union
As noted above, the first breakthrough in South
was behind the North Korean invasion of the
Korea's move toward rapprochement with socialist
South in June 1950 and still continues to supply
Trade with the East Bloc
(Million $/%)
Exports
Imports
Two-way Total
Percent
Percent
Percent
'89
'90
'89
'90
'89
'90
of Increase
of Increase
of Increase
Total
1,962
2,758
40.6
2,261
2,886
27.6
4,223
5,644
33.6
China
1,438
1,580*
9.9
1,705
2,268
33.0
3,143
3,848
22.4
USSR
208
519
149.5
392
370
-5.6
600
889
48.2
East European Countries
270
541
100.4
117
213
82.1
387
754
94.8
Yugoslavia
47
214
355.3
20
42
110.0
67
256
282.1
Poland
56
113
101.8
18
91
405.5
74
204
175.7
Hungary
49
90
83.7
19
23
21.1
68
113
66.2
Czechoslovakia
79
52
34.2
24
23
-4.2
103
75
-27.2
Romania
0.3
22
-
19
3
- -84.2
19
25
31.6
Bulgaria
18
18
0.0
11
21
81.8
29
38
31.0
Others
46
118
156.5
47
35
-25.5
93
153
64.5
Vietnam
45
117
160.0
42
33
-21.4
87
150
72.4
Mongolia
0.1
0.5
400.0
0.5
2
300.0
0.6
2.5
316.7
Source: The Office of Customs Administration
*
The breakdown of the total does not include all East bloc countries with which Korea trades. Exports to China for 1990 are estimated.
Products Traded with the PRC
Products Traded with the USSR
(Million $/%)
(Million $/%)
Exports
Imports
Exports
Percent
Imports
Percent
Products
Value
of
Products
Value
of
Percent
Percent
Increase
Increase
Products
Value
of
Products
Value
of
Fabrics
328
Increase
43.7
Fabrics
307
Increase
4.8
TVs and parts
142
-8.4
Crude oil and
Ships
181
325.5
Pig iron
67
10.7
201
97.4
petroleum products
VTRs
66
371.4
Bituminous coal
54
14.9
Plastics
78
-7.5
Yarns and fibers
139
-22.5
Textiles
29
107.1
Aluminum
32
255.6
Yarns and fibers
61
-24.1
Bituminous coal
103
39.1
Electric motors
24
700.1
Crude oil
26
-
Paper and
Cement
-28.1
Frozen seafood
48
95
-
Cold rolled steel
23
19
-6.6
31.9
cardboard
modern military hardware to North Korea and re-
Gorbachev.
mains its major economic benefactor. They are
thus seen as one important key to a solution to
On March 26, 1990, diplomatic relations were
the complex Korean question. It is hoped that as
opened with Mongolia, the first Asian Communist
ties improve between the South and the Soviet
country to initiate formal ties with the South. This
Union, as its economy is helped by economic ties
should favorably affect South Korea-Vietnam re-
with the South and as the Cold War winds down
lations which are being improved gradually, par-
the world over, the Soviet Union will be able to
ticularly in terms of economic cooperation. It may
convince North Korea to open up to the outside
also influence Seoul's relations with China.
world and negotiate a peaceful settlement with the
The People's Republic of China is North
South eventually leading to peaceful unification.
Korea's other major ally and though the Soviet
Seoul's political and economic goals, therefore,
Union has supplied more military aid to the North,
basically coincided with Moscow's economic needs
China is closer ideologically and is also a source
to push the two nations into a rapid acceleration
of economic aid. China is attracted by the South's
of ties which began with the opening of trade
rapid economic development but improvement in
offices in April 1989 and culminated in the estab-
ties have been complicated by their desire not to
lishment of full diplomatic relations on Septem-
unduly upset their North Korean comrades.
ber 30, 1990, an event preceded and followed by
Nevertheless, the constantly increasing economic
summit meetings between Presidents Roh and
ties between the two countries led in October 1990
to an agreement to establish trade offices with
impact on the attitude of North Korea, either to
consular functions. The Korean trade office in
the South or to the Free World in general. While
Beijing opened in January 1991 and the Chinese
the initial inclination may be to say, "not much,"
office is expected to open in Seoul in early March.
the truth is that some faint signs are appearing that
Two-way trade which rose from $3.1 billion in
some shifts are occurring in the North Korean at-
1989 to $3.8 billion in 1990 is expected to increase
titude. Only time will tell if these represent a real
even more rapidly in the months ahead as the two
desire for change or only an extension of the
trade offices lay a foundation for better and closer
North's pet propaganda trickery. The fact that the
economic relations. Seoul hopes that full diplo-
Prime Ministers of the South and North have met
matic relations with Beijing will follow in the near
three times can be an indicator of what is in the
future as has been the case with other socialist
offing. It is the first time that such high ranking
countries but is also well aware that China may
officials have met since the division of the nation.
be more reluctant to move quickly than was the
While no substantial agreements have been
Soviet Union.
reached, it is still significant that such meetings
have been held between the two hostile parts of
Korea. The second sign that North Korea may in-
Future Prospects and Conclusion
deed feel pressured to open up, not only by its
own mounting economic problems but by the suc-
In a short span of time, Korea's Northern
cess of the South's Northern Diplomacy, are the
Diplomacy has made dramatic progress due to the
talks which it has begun with Japan on normaliz-
convergence of several factors as already discussed.
ing relations. While all predictions are that the
Korea has by now established diplomatic ties with
negotiations will be a slow and tortuous process,
nearly all the East European nations plus Mon-
the fact that P'yongyang has begun to talk to what
golia and is turning its attention to the remaining
it has called an imperialist enemy all along is a
hardline Communist countries, especially those of
sign that North Korean attitudes are indeed be-
East Asia. While relations have certainly warmed
ginning to change. Durable peace and security on
even with these holdouts, it may take a relatively
the Peninsula and peaceful unification are top na-
long time to come to terms with them because of
tional goals and will thus continue to be a major
their still continuing adherence to Communist
goal of Korea's Northern Diplomacy. There seems
ideology and their closer ties and sense of com-
to be cause for guarded optimism that some
radeship with North Korea. Nevertheless, the
progress can finally be made toward that end, in
events of recent years point to the slow but steady
spite of the apparent futility of efforts along that
germination of relations with the remaining so-
line so far.
cialist countries as well.
As far as relations with former and present so-
A corollary of the success of the Northern
cialist countries with which Korea has already es-
Diplomacy has been an increase in Korea's inter-
tablished ties, the focus will be on ever expanding
national stature, enabling it to contribute a great-
scientific, technological, academic and cultural ex-
er share to the international community. This may
changes. The benefits to Korea will come not only
well lead in the near future to Korea's being ad-
from the increasing diversification of markets
mitted into the United Nations, either with North
which will certainly help strengthen the economy
Korea or on its own. This will mean that the
but also from exposure to various hither-to-
Republic will have been accepted into the world
unknown ideas and cultural experiences. The ex-
community as a full-fledged member.
tent to which both sides will benefit from the new
ties will depend to a great extent on the ability of
the East bloc nations to make a success of their
brave reforms and put their economic house in
order.
The question then remains about whether the
new ties are already having or will soon have any
THE ECONOMY
Past Performance, Current Policies and Future Prospects
Korean Overseas Information Service/Seoul, Korea
February 1991
In the last quarter century, Korea's economic
Korea's commodity trade volume increased
growth has been among the fastest in the world.
from US$500 million in 1962 to US$123.9 billion
The country has overcome obstacles and chal-
in 1989. Korea had continuously posted trade
lenges to transform itself from a subsistence-level
deficits until 1985 when the country's foreign debt
economy into one of the world's leading newly
reached US$46.8 billion, the fourth largest in the
industrializing countries. Today, however, the
world. During 1986-1989, Korea recorded current
Korean economy faces new challenges; internal-
account surpluses and its debt declined.
ly, it must deal with the inevitable demands that
Inflation in Korea had been one of the major
come with the process of political democratiza-
economic problems in the 70s and early 80s, dur-
tion and externally, it is confronted by an increas-
ingly complex international trading environment.
ing which consumer prices rose at annual rates of
between 10-20 percent. Since 1982, Korea has
managed to keep inflation down in single digits.
Past Performance and Policies
The ratio of domestic savings to GNP grew from
3.3 percent in 1962 to 37.7 percent in 1989.
Since Korea launched its First Five-Year Eco-
nomic Development Plan in 1962, the country's
Current Developments and
real GNP has expanded by an average of more
than 8 percent per year. As a result, Korea's GNP
New Challenges
has grown from US$2.3 billion in 1962 to US$210
billion in 1989; per capita GNP has increased from
The current prospects for the economy, unlike
a meager US$87 in 1962 to about US$5,000 in
the past, are not so bright. Since 1989, the Korean
1989 at current price levels.
economy had been experiencing difficulties, in-
cluding slower growth, high inflation and a de-
The industrial structure of the Korean econo-
terioration of the balance of payments.
my has also been completely tranformed. The
agricultural sector's share of GNP has declined
The GNP growth rate fell to 6.7 percent in 1989
from 37.0 percent in 1962 to 10.2 percent in 1989.
from the 12 percent level of previous years. A
The manufacturing sector's share has increased
slump in the growth rate of the manufacturing sec-
from 14.4 percent to 31.3 percent in the same peri-
tor, from 18.8 percent in 1987 and 13.4 percent
od. The service sector accounted for only 24.1 per-
in 1988 to 3.7 percent in 1989, contributed large-
cent of GNP in 1962 but generated 46.8 percent
ly to the declining GNP growth. The export
in 1989.
growth rate, which was 36.2 percent in 1987 and
28.4 percent in 1988, fell to just 2.6 percent in
Trends of Major Economic Indicators
1989. Reflecting this fall in the export growth rate,
the current account surplus was lowered to around
Unit
'62
'70
'75
'80
'85
'89
US$5.0 billion, a significant drop from the 1988
surplus of US$14.2 billion.
GNP
US$ bil.
2.3
8.1
20.8
60.5
89.7
210.1
Per Capita GNP
US$
87
242
590
1,592
2,194
4,968
In 1990, the economic growth rate has shown
GNP Growth Rate
%
2.2
7.6
6.8
-4.8
7.0
6.7
signs of recovery. Preliminary estimates show that
Domestic Savings Ratio
%
3.3
17.9
17.9
22.9
30.0
36.3
the GNP growth rate during the first three quart-
Trade Volume
US$ bil.
0.5
2.7
11.7
38.8
52.9
123.9
ers of the year was 9.8 percent. However, most
Wholesale Price
%
9.4
9.2
26.3
39.0
0.9
1.1
of this growth is attributable to an increase in
Consumer Price
%
8.3
15.9
25.3
28.7
2.5
5.1
domestic demand, particularly domestic consump-
Recent Economic Trends
Major Tasks and Policy Directions
'90
Unit
'89
To cope with the new challenges to economy,
(Jan.-Sept.)
the Korean Government has made and implement-
GNP
ed economic measures, including the 'Economic
GNP
Growth Rate in %
6.7
9.8
Revitalization Package of April 4', the 'Anti Real
Manufacturing Sector
Growth Rate in %
3.7
8.5
Estate Speculation Package' and 'Stabilization
Private Consumption
Growth Rate in %
9.8
10.4
Policies'. The major objectives and policy direc-
Investment
Growth Rate in %
16.2
24.5
tions contained in these measures are as follows:
Equipment
Growth Rate in %
12.3
18.0
Prices
Structural Adjustment and
Wholesale Price
%
1.1
5.5
Technology Development
Consumer Price
%
5.1
9.0
First, the Government has made and will make
Balance of Payments
efforts to improve the international competitive-
Export
US$ bil.
61.4
46.0
ness of Korean industry. To induce capital invest-
Import
US$ bil.
56.8
46.4
Current Account Balance
US$ bil.
5.1
-0.7
ment in the manufacturing sector and to stimulate
sagging exports, the Government increased spe-
cial loans for capital investment in the manufac-
turing sector and provided funds for the restruc-
tion. The growth rate of exports was only 3.2 per-
turing of small and medium firms. The Govern-
cent compared to the same period of 1989, while
ment will increase R&D investment and encourage
the growth rate of imports was 10.4 percent. The
private enterprises to actively invest in technolo-
trade balance fell rapidly to a US$0.5 billion deficit
gy development on their own. The Government
in the first three quarters of last year from the $4.5
is also placing emphasis on promoting the develop-
billion surplus in 1989. In addition, price stability,
ment of basic science and technology-intensive sec-
which had served to boost Korea's competitive-
tors such as semiconductors and new materials
ness, weakened; consumer prices, which had ris-
industries. For the traditional sectors, product in-
en on annual average of 2-3 percent between 1984
novation for higher value-added products is be-
and 1987, rose to 9.0 percent in the first three
ing encouraged. Industrial restructuring through
quarters of 1990.
measures such as overseas investment will be
The eruption of war in the Gulf has made fu-
promoted as well.
ture performance of oil prices uncertain. If the on-
going conflict results in a substantial and sustained
Price Stability
rise in oil prices, then Korea's balance of payments
Second, the Government will focus on stabiliz-
would plunge further into deficit. The cumulative
ing prices, wages and real estate speculation.
effects of external and internal price hikes will raise
Breaking the vicious circle of high wages, high
production costs which in turn will diminish eco-
prices and low growth is critical for further de-
nomic growth and the competitiveness of exports.
velopment and also for pursuing economic re-
In a nutshell, the current Korean economy faces
forms. In this regard, the Government is encourag-
many new challenges in both the internal and ex-
ing management and labor unions to set up a
ternal front. Part of the economic slowdown may
"wage increase rule" whereby wage increases will
be explained by the cyclical adjustment of the
remain within the scope of productivity growth.
economy after three consecutive years of high
The Government will try to contain the prices
growth. However, concerns have been growing
of staple goods such as rice by containing the rise
that a large share of the slowdown is attributable
of the Government purchase price. To prevent the
to structural problems, particularly regarding the
increase of housing price, a primary source of in-
international competitiveness of Korea's industry.
flationary concerns in Korea, the Government will
institute measures to restrict real estate specula-
tion. Additionally, the Government will increase
investment for the supply of affordable housing.
Resolution of Imbalances and Inequalities
1988, the Korean Government has been undertak-
ing appropriate measures to further liberalize
In order to resolve imbalances and inequalities
foreign exchange transactions and gradually inter-
that have arisen in various segments of the econ-
nationalize its currency.
omy during the process of rapid industrialization,
In March 1990, the Korean Government in-
the Korean Government will put more emphasis
troduced a new foreign exchange system called the
on the following: the development of rural areas,
"Market-Average System." In this new system,
supporting low-income urban classes and the poor,
the official rate is determined on the basis of the
development of regions which have lagged behind
previous day's inter-bank exchange rates. By 1992,
the national development standards, and support-
the Korean Government will allow direct partici-
ing small and medium-sized firms. In particular,
pation in the domestic securities market by
a set of regulations to deter the overconcentration
foreigners and overseas portfolio investment by
of land ownership by a minority of the popula-
Koreans.
tion has been implemented since the beginning of
1990.
Increasing Opportunities for Foreign Investors
External Policies for
Korea is broadening the scope of opportunities
open to foreign investors. In 1984, the country in-
Greater International Cooperation
troduced a negative list system for investment ap-
proval which made it clear which industries were
Import Liberalization
open to foreign investment.
Korea is committed to establishing the strate-
Since then, the Government has annually in-
gies and policies necessary for fulfilling its inter-
creased the number of industries on the open list.
national responsibilities and roles commensurate
Nearly 80 percent of all industry fall into this
with its economic status. Import liberalization is,
category. The manufacturing sector is almost com-
and will continue to be, the guiding principle in
pletely open to foreign investors and the service
Korea's trade policy.
sector is becoming increasingly open as well. By
the end of 1992, the current foreign investment
Since 1980, Korea has made continuous efforts
approval system will be converted to a notifica-
towards import liberalization. The import liber-
tion system.
alization rate increased from 68.6 percent in 1980
to 96.4 percent in 1990. The average tariff rate
Closer Cooperation with Developing Countries
decreased from 24.9 percent to 11.4 percent dur-
ing the same period and is expected to be only 7.9
Because of its successful economic development
percent by 1994, the same average level of tariffs
in the past quarter-of-a-century, Korea has increas-
found in OECD member countries.
ingly been called upon to share its development
In October 1989, Korea decided to disinvoke
experiences with other countries. Trainees from
GATT balance of payments protection which
other developing countries now come to study the
mostly covers agricultural products. According to
Korean experience while Korea dispatches develop-
the decision, Korea will move to eliminate its re-
ment experts to work with governments and busi-
maining restrictions or otherwise make them con-
nesses overseas.
form with GATT rules by July 1, 1997.
Furthermore, in 1987, Korea established the
Economic Development Cooperation Fund
Liberalizing Foreign Exchange Transactions and
(EDCF) to provide bilateral official loans to de-
Capital Markets
veloping countries. As of October 1990, Korea has
arranged to provide loans for seven projects in
The Korean Government has been pursuing the
seven developing countries. The Korean Govern-
liberalization of foreign exchange transactions and
ment also promotes private overseas investment
capital markets. In particular, since Korea joined
and technology transfer.
the list of IMF Article VIII nations in November
Promoting Economic Exchanges
Active Participation in
with Socialist Countries
Multilateral Economic Forums
The Government is pursuing a "northern poli-
Korea has actively participated in virtually all
cy," the aim of which is to promote economic
multilateral forums. In the Uruguay Round, Korea
relations with socialist countries. The 1988 Seoul
has made contributions that are commensurate
Olympics provided the impetus for Korea to es-
with its capabilities and played a mediating role
tablish ties with socialist nations, and "Perestroi-
between the developed and developing countries.
ka" in the Soviet Union and German Unification
Korea has introduced various proposals in the
have expanded opportunities in this area.
Uruguay Round negotiations to reduce tariffs,
eliminate non-tariff barriers, liberalize textile trade,
The volumes of Korea's trade and investment
with socialist countries have expanded markedly
improve safeguarding measures, and reduce sub-
since 1988. Trade amounted to US$3.6 billion in
sidies and countervailing measures.
1988 and to US$4.2 billion in 1989. Trade with
Korea will host the third APEC (Asia Pacific
the Soviet Union grew 106.8 percent in 1989 and
Economic Cooperation) Ministerial Meeting in
62.1 percent during the first three quarters of
1991. Korea has joined the European Develop-
1990. Trade with East European countries as a whole
ment Bank in March 1990 and has committed sup-
grew 80.8 percent and 101.2 percent in these same
port to development in Eastern Europe. Korea has
intervals, respectively. As of September 1990,
also begun an informal dialogue with OECD and
Korea has invested US$57 million for 44 projects
has held an OECD-DAEs (Dynamic Asian Econ-
in China and has invested US$119 million in other
omies) workshop in 1990, in Seoul.
countries.
Pre-Advance for Presidential Visit
October 22-23, 1991
Shilla Hotel
BACKGROUND INFORMATION ON SURVEY SITES
NATIONAL CEMETERY
The cemetery was created in 1954 as the Armed Forces Cemetery
and renamed the National Cemetery in 1965. The cemetery covers
343 acres, and more than 47,000 identified members of the
Korean Armed Forces and other illustrious Koreans are buried
there. The cemetery is also the resting place of 120,000
Korean military personnel whose remains have not been
identified. A memorial tower 30 meters high, constructed in
1967, commemorates these dead. The tomb of the unknown soldier
is located on the cemetery grounds. President Park, Chong Hui
and his wife are also buried at the National Cemetery.
Hyun-choong Gate
THE NATIOAL CEMETERY, NATION'S HOLY GROUNDS
The National Cemetery, as nation's holy grounds where rest the departed patriots and war dead who
threw their precious lives for the defense and prosperity of their fatherland, is the centripetal point of
strong national spirit where we can meet with one mind and feel patriotism of those deceased who de-
fended our country.
This cemetery in its rear side adjoins the ridges of Tongjak hills which are spread like three-fold
screens, whose main peak is Mt. Kongjak, alongside the foot of Mt. Kwanak, and in its front side flows
the Han River divinely, and ençompasses the soft and comfortable soils covering 1,430,000m²
(351acres)of area surrounded with the meandering hills, and watches the glorious history of this country.
The National Cemetery was founded on July 15, 1955 as the military cemetery and enshrined only
the military officers, enlisted men and military employees, but 10 years thereafter it was elevated as to-
day's national cemetery on March 30, 1965 and now some 162,000 patriotic spirits are enshrined in-
cluding patriotic martyrs, patriots, meritorious individuals, military officers and enlisted men, police offic-
ers and reservists.
As people's self-independence spirit become elevated, some million prayers visit this cemetery year-
ly throughout the four seasons, and a nationwide memorial ceremony is yearly observed on June 6 to
pray the heavenly bliss for those departed patriotic spirits that defended this country throwing their lives
and so contributed to what this country is today.
THE NATIONAL CEMETERY GUIDE MAP
00
24
Introductory Remarks
1
Main Gate
23
2
Information
3
Management Office
4
Golden Lawn Plaza
00000
5
Memorial Museum
22
6
National Defense Hall
21
7
Education and Movie Hall
8
Hyun-Choong Pond
VIA
20
9
110
Hyun-Choong Gate and Tower
19
0
0000
00000
00000
10
Monument for the Ranger Com-
mandos
D
17
18
11
Monument for the Ten Human
16
000
O
Bombs
0
0
12
Police officers Graveyard
15
14
13
Monument for the Police officers
14
West Graveyard for Soldiers
13
15
East Graveyard for Soldiers
12
16
Graveyard for Patriots
1111
17
Second Graveyard for Generals
18
Second Graveyard for Meritorious
Citizens
11
19
Third Graveyard for Generals
9
20
Tomb of The Late President
Syng-Man Rhee
10
4
21
Farm of Deers
5
22
First Graveyard for Meritorious
Citizens
6
ill
23
First Graveyard for Generals
8
3
2
24 Tombs of The Late Mr. and Mrs.
1
President Chung-Hee Park
7
Speaker Installation
THE NATIONAL ASSEMBLY
The Assembly building located on Yoido, a large island on the
Han River, was completed in 1975. It houses offices, meeting
rooms, and the Assembly's library.
The current National Assembly is composed of 299 members from
two political parties. It is the Thirteenth National Assembly
since the founding of the Republic in 1948, and was elected in
April 1988. The Assembly Speaker is Park, Jyun Kyu.
This Assembly has played a larger role in politics and
policy-making than previous assemblies. Nonetheless, the
ruling Democratic Liberal Party controls the majority of
seats. The two opposition parties merged into the Democratic
Party in September 1991. The Democratic Party leaders are Kim,
Dae Jung and Lee, Ki Taek.
THE BLUE HOUSE
The Blue House is the official residence of the President of
the Republic of Korea. During the Koryo Dynasty, a palace
called Yi-Koong, used by the King as a resting place, was
located on what are now the grounds of the Blue House.
When Kyongbok Palace was built during the Yi Dynasty, the Blue
House area was the rear garden of the Royal Palace. In 1927,
the Japanese government constructed the present Blue House as a
residence for its Governor-General.
In 1948 when the Republic of Korea was established, the
building was designated as the Presidential residence. After
the student revolution (April 19, 1960), the building was
redesignated as Chong Wa Dae (Blue Tile House), a name derived
from its unique blue roof tiles.
SEOUL SCIENCE HIGH SCHOOL
Seoul Science High School was established in 1989 by the
Ministry of Education as a "direct outgrowth of heightening
concern for scientific and technological discoveries which
represent the strength of a country in the modern world" as one
of seven such schools nationwide and the only one existing in
Seoul. It has 30 students to a class, about half of the
average class size in Korea, and six classes in each grade,
totaling approximately 500 students. It is a co-educational
school with female students making up about one-sixth of the
population.
The applicants must be in the top three percent in their
academic records from junior high school and compete in an
entrance examination (one in eight is accepted). There are
currently 57 teachers. Instruction is highly individualized
and non-graded. Many students accelerate their graduation by
two years, and about 90 percent enter the Korea Institute of
Technology. Students live in dormitories and thus have 24-hour
access to computers and laboratories.
AMBASSADOR'S RESIDENCE
The site of the Ambassador's residence in Seoul has the
distinction of being the first property in Korea to be sold
to a foreigner. The site has been in U.S. possession for
almost a century.
The original residence, which housed all American representatives
since 1884, was dismantled in 1973. Construction of the new
residence for the American Ambassador was begun in 1974.
The residence is a combination of basic Korean style with
modern features. The traditional exposed beams, columns
and rafters were made from spruce and douglas fir imported
from the U.S.
The representational and private areas are separated by a
central court and a broad corridor. A dining room, library,
music room, and two guest rooms complete the representational
area.
U.S. FORCES AT YONGSAN
The Yongsan Garrison occupies 714 acres of land just south
of Namsan Mountain. The post is divided into three major
areas: South Post, North (Main) Post, and Camp Coiner, with
several smaller areas adjacent to these three. One hundred
and sixty tenant units occupy 1,225 buildings. Additionally,
the post provides all the support facilities associated with
a small city: a hospital, a fire station, a police force,
commissary and exchange facilities, schools, theaters, etc.
The United States Forces Korea has approximately 7,000
military personnel stationed at Yongsan. They are augmented
by about 1,400 U.S. civilian and 6,000 Korean civilian
employees.
SENT BY:HERITAGE FOUNDATION-1 ;12- 9-91 5:23PM ;
2025442260->
CCITT G3;# 1
THE ASIAN STUDIES CENTER OF THE HERITAGE FOUNDATION
Phone: (705) 546-4400
Fax: (202) 544-2260
202
DATE:
December 9, 1991
TO:
Jeannie Bunton
FAX NUMBER:
456 6218
FROM: Rick Fisher
TOTAL PAGES:
7 pgs., ++ cover
COMMENTS:
:
A friend is looking for a list of proverbs and may fax them
to you.
214 Massachusetts Ave., N.E., Washington, D.C. 20002
CCITT G3;# 2
OEOR OPY FIND HAS
A
The
Heritage Foundation
U.S. and Asia
The Heritage Foundation was established in 1973 as a nonpartisan, tax-exempt
2025442260>
policy research institute dedicated to the principles of free competitive enterprise,
limited government, individual liberty, and a strong national defense. The Fonoda-
tion's research and study programs are designed to make the voices of responsible
conservatism heard in Washington, D.C., throughout the United States, and in the
Statistical Handbook
capitals of the world.
Heritage publishes its research in a variety of formats for the benefit of policy
makers, the communications media, the academic, business and financial commu-
nities, and the public at large. Over the past five years alone The Heritage Foundation
has published some 1,000 books, monographs, and studies. ranging in size from the
953-page government blueprint, Mandate for Leadership III: Policy Strategies for the
1990s, to more frequent "Critical Issues" monographs and the topical "Back-
1991 Edition
grounders" and "Issue Bulletins" of a dozen pages. At the start of 1981, Heritage
published the 1,093-page Mandate for Leadership: Policy Management in a Conser-
vative Administration. Heritage's other regular publications include National Secu-
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rity Record. Education Update, and Policy Review, a quarterly journal of analysis and
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In addition to the printed word, Heritage regularly brings together national and
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tiouing series of seminars. lectures, debates, and briefings.
Compiled by
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with
SENT BY:HERITAGE FOUNDATION-1 ;12-9-91
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Henry M. Butler
Note:Nothing written here is to be construed as necessarily reflecting the views of The
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and
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William Randolph Jack
The Heritage Foundation
214 Massachusetts Avenue, N.E.
Washington, D.C. 20002
U.S.A.
(202) 546-4400
KOREA, SOUTH
ECONOMIC STATISTICS
CCITT G3;# 3
KOREA, SOUTH
(Billions of US$, percentages where appropriate)
LAND
1984
1985
1986
1987
1988
1969
1990
Area: 38,200 square miles
GDP
87.0
89.7
102.7
128.4
169.2
204.0
223.85
Cultivated: 21.6%
Forest: 65.8%
Pasture: 1.0%
Growth
9.3%
7.0%
12.9%
12.8%
12.2%
6.5%
8.6%
Resources: coal, tungsten, graphite, iron ore, limestone, graphite
CPI Rise
2.3%
2.5%
2.8%
3.0%
7.1%
5.2%
9.2%
POPULATION
Exports
29.259
30.289
34.792
47.301
60.679
62.371
63.124
1990 Estimate: 43,350,000
Annual Growth: 0.8%
to U.S.
10.027
10.713
13.497
17.991
21.164
20.543
18.5
Life Expectancy: 69 years
Literacy: 93%
Imports
30.628
31.058
31.734
41.025
51.812
61.556
65.127
Infant Mortality: 23
Fertility: 16
from U.S.
5.983
5.956
6.355
8.099
11.290
13.478
Ethnic Divisions: Korean: 100%
14.4
CurAccount
-1.372
-0.887
4.617
9.854
14.161
5.1
-1.8
2025442260->
Workforce: 17,963,000 Unemployment: 3.0%
Commerce and Services: 25.5%
Manufacturing: 27.5%
South Korea is the 7th largest U.S. trading partner.
Agriculture and Fishing: 20.5%
Construction: 6.0%
Government and Public Authorities: 20.0%
MILITARY
Students: Primary and Secondary: 9,640,000
University: 1,300,000
1990 Military Budget: US$ 10,891,000,000
Increase over 1989: 10.2%
POLITICAL
Outlay as a Share of GNP: 4.7%
Official Name: REPUBLIC OF KOREA
As a Share of Government Spending: 31.1%
Capital: Seoul
Total Regular Forces: 750,000
Type of Government: Multi-party Republic
Chief of State: President ROH Tae Woo
Army: 650,000
Reserves: 4,500,000
Head of Government: same
Navy: 60,000
Airforce: 40,000
5:24PM
Foreign Minister: LEE Sang Och
Combat Aircraft: 493
1991 Freedom House Index (I is highest, 7 is lowest)
Naval Vessels: 3 Attack Submarines, 9 Destroyers, 25 Frigates, 4 Corvettes, 11 Fast-
Political Freedom: 2
Civil Liberties: 3
Attack Craft (missile), 68 Inshore Patrol Craft, 9 Minesweepers
1989 Voting with U.S. at U.N.: Not a voting member of the U.N.
Security Alliance with U.S.: Mutual Cooperation and Security (1954)
Other Security Alliances: none
FY 1991 U.S. Assistance (Allocations)
Economic: none
Military: US$ 1,000,000
U.S. Military Installations: Kunsan Air Base, Uijong-Bu HQ, Tongduchon Army Base,
Osan Air Base
ECONOMY
U.S. Military Personnel: 32,000 Army, 12,200 Air Force
SENT BY:HERITAGE FOUNDATION-1 ;12- 9-91
Currency: Won, 1 US$ = 716.4 Won (1990)
Foreign Military Personnel: none
Major Industries: textiles and clothing, food processing, chemicals, steel, electronics,
Armed Opposition Groups: none
ship building, automobile production
INVESTMENT
Major Agricultural Products: rice, barley, vegetables, legumes
Major Imports: machinery, oil, steel, transportation equipment, textiles, organic
1990 U.S. Direct Investment: US$ 2,096,000,000
chemicals, grains
1990 South Korean Direct Investment in the U.S.: US$-850,000,000
Major Exports: textiles and clothing, electrical machinery, footwear, steel, ships, auto-
mobiles, fish
Per Capita GDP: US$ 5,140 (1990)
3
46
47
KOREA, NORTH
KOREA, NORTH
ECONOMIC STATISTICS
CCITT G3;# 4
(Billions of US$, percentages where appropriate)
LAND
1984
1985
1986
1967
1988
1989
1291
Area: 47,100 square miles
GDP
18.9
19.7
20.1
19.59
20.18
20.78
21.5
Cultivated: 19%
Forest: 74%
Pastore: 1%
Growth
2.7%
4.0%
2.0%
2.0%
2.0%
2.0%
2.0%
Resources: coal, lead, tungsten, zinc, graphite, magnesite, iron, copper, gold, phosphates,
CPI Rise
Da
na
na
02
salt, fluorspar
na
па
na
Exports
0.691
0.638
0.673
0.796
0.931
na
2.1
POPULATION
to U.S
0.0
0.0
0.0
0.0
0.0
0.0
0.0
1990 Estimate: 21,293,000
Annual Growth: 1.7%
Imports
0.813
0.825
0.839
1.120
25
2.6
2.6
Life Expectancy: 72 years
Literacy: 95%
from U.S.
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Infant Mortality: 27
Fertility: 2.1
Ethnic Divisions: Korean: 100%
CurAccuunt
na
na
na
na
na
na
na
2025442260->
Workforce: 8,100,000
Unemployment: officially none
Trade with North Korea is illegal.
Commerce and Services: na
Manufacturing: na
Agriculture and Fishing: na
Construction: na
MILITARY
Government and Public Authorities: na
1989 Military Budget: US$ 4,154,000,000
Students: Primary and Secondary: 5,000,000
University: 100,000
Increase over 1988: -10.2%
POLITICAL
Outlay as a Share of GNP: 24%
As a Share of Government Spending: 30%
Official Name: DEMOCRATIC PEOPLE'S REPUBLIC OF KOREA
Capital: Pyongyang
Total Regular Forces: 1,111,000
Type of Government: Communist State, one-man rule
Army: 1,000,000
Reserves: 540,000+
Chief of State: President KIM II-Sung
Navy: 41,000
Airforce: 70,000
5:25PM
Head of Government: same
Combat Aircraft: 716
Foreign Minister: KIM Yong Nam
Naval Vessels: 24 Attack Submarines, 3 Frigates, 3 Corvettes, 34 Fast-Attack Craft
1991 Freedom House Index (1 is highest, 7 is lowest)
(missile), 173 Fast-Attack Craft (torpedo), 6 Coastal Patrol Craft, 148 Inshore Patrol
Political Freedom: 7
Civil Liberties: 7
Craft, 20 Minesweepers
1989 Voting with U.S. at U.N.: Not a voting member of the U.N.
Security Alliance with U.S.: none
FY 1991 U.S. Assistance (Allocations)
Other Security Alliances: Treaty of Cooperation and Mutual Friendship with USSR
Economic: none
Military: none
(1961); Friendship and Non-Agression Treaty with PRC (1951)
U.S. Military Installations: none
SENT BY:HERITAGE FOUNDATION-1 ;12- 9-91
ECONOMY
U.S. Military Personnel: none
Currency: Won, 1 US$ = 2.18 Won (1989 official rate)
Foreign Military Personnel: попе
Major Industries: machine building, electric power, chemicals, mining, metallurgy,
Armed Opposition Groups: none
textiles, steel, cement
INVESTMENT
Major Agricultural Products: com, rice, vegetables, fruits, fish
Major Imports: petroleum, machinery and equipment, coking coal, grain
1990 U.S. Direct Investment: none
Major Exports: minerals, metallurgical products, agricultural products, manufactures,
1990 North Korean Direct Investment in the U.S.: none
machinery, chemicals, fish
Per Capita GDP: USS 930 (1989)
44
45
REGIONAL
PERFORMANCE
FIGURES
Area ('000 km2)
047.5
7,682.3
144
46.5
5.8
677
181
9,800
18.3
1.074
3.289
1.948
377.8
122.3
99.2
200.0
% cultivated
12
2.4
83.53
0.8
0.28
15
11
10
15
&
55.1
3125
14.1
19
21.0
3
% forest
3
8.3
14.53
68.7
B5
40
74
13
55
20.6
11.1
30.520
66.4
74
65.4
40
% pasture
45
3.7
4.05
1.9
1
2
3
33.2
3
nil
4.B
5.825
1.7
1
0.1
n.o.
Population
Total 1999 (m)
15.9
17.1
114.8
1.6
0.3
41.3
7.0
1,119.9
0.8
5.8
883.4
109.4
123.8
21.3
42.0
4.0
% average annual growth '62-'88
2.6
0.8
2.6
2.1
2.5
2.0
2.2
1,4
2.2
0.8
2.1
1.8
0.4
2.1
1.0
2.5
Projected year 2,000 (m)
25.4
19.1
146.6
1.9
0.3
48.8
8.6
1,280
0.0
8.3
1,042.8
223.8
127.5
24.9
40.0
5.0
Years till population doubles
27
90
E2
32
27
34
31
49
32
82
33
38
175
32
72
28
Urban population 92 % of total
18
85
13
5
59
24
11
21
39
B3
26
26
77
64
70
10
Death rate per 1,000
22
7
14
17
3
73
18
7
6
$
11
0
6
5
B
16
Birth rate per 1,000
46
15
39
38
29
#
39
21
27
13
32
27
10
26
10
41
Infant mortality per 1,000
182
8.7
120
128
11
97
128
37
21
7.4
95
89
4.8
33
30
110
% under 18 years
40
22
48
38
37
37
36
27
38
22
39
30
20
34
27
43
Life expeciency
41
70
54
48
71
55
49
68
63
77
57
59
79
70
08
47
Students
Primary
580,500
1.73m
11.6m
63,643
38.083°
6.48m
919.500
123.7m
137,916
534,450
129.9m
30.02m
9.37m
n.z.
4.86m
495,7
Secondary
105,000
1.28m
2.8tm
4,370
18,748
1.42m
98,800
80.8m
44,446
450.148
19.77m
4.48m
5.37m
6,8,
4.55m
60.2:
University
13,800
441,076
47,039
407
0356
nill
11,500
2.1m
2,000
$9,532
3.1m
1.83m
2.13m
n.a.
1,10m
20.00
Workforce
Total (m)
4.98
8.41
34.75
0.00
0.00
18.2
3.75
553
0.25
2.73
311
75.1
63.3
7
17.9
1.0
% commerce, services
12.7
61.23
18.07
3.8
26.4
17.65
23
13.2
12.82
82.2
10.5
28.3
64.7
n.a.
42.4
17.
% manufacturing
10.2
14.27
10.84
0.7
6.6
7.93
2.8
17.3
8.08
27.7
6.5
6.7
24.1
38
27.0
1.1
% agriculture. fishing
67.8
5.04
65,27
03
5
69.74
80.8
80.2
0.85
0.8
52.3
55
0.2
43
19.5
BC
% construction
0.3
6.98
3.08
n.a.
33"
1.14
n.s.
4.4
2.1
8.6
7.2
n.a.
9.3
p.a.
B.S
D.
% govt. and public authorities
n.a.
4.85
11.56
2
40
3.59
n.s.
1.8
29
0.7
0.8
1.7
3.1
18
4.4
B.:
Social
Persons per hospital bad
2,200 est.
n.a.
3,277
1.480
250
1,663
n.a.
433
435
232
1,700
1,540
04
n.a.
335
37
Persons per dector
14,471
n.s.
3,488
9,700
1,600
3,947
n.a.
647
2,123
885
4,900
7,044
611
N.R.
938
26,:
Literacy rate (%)
12
90
28
20
80.3
70
41 est.
n.a.
86
n.a.
36.2
n.a.
99.7
D.H.
98
4
TV receivers ('000)
12 ᵃ
n.a.
460
n.a.
63
n.a.
n.a.
188,873
50 est.
n.b.
2,800
9,002
n.a.
It.S.
n.a.
e
Radios ('000)
82326
n.a.
4,000
16
02
n.s.
1779
262,408
350 est.
n.a.
37.000
n.a.
n.3,
n.a.
n.w.
35
Telephones ('000)
31.22
4,889.18
241
1.99
49
67.5
27
10,893
38
3,105 ast.
4,300
1,882
n.a.
n.3.
15,000
6.
Care
35,000
7.44m
52,000
2,411
68,997
n.a.
n.e.
1.46m
39,924
213,16914
1.89m
3.05m
56.1m
n.a.
2.95m
15,
Trucks and commercial
31,000
2.05m
63,000
1,357
13.248
107.283
7,100
3.46m
63,339
137.03016
2.55m
3.05m
21.3m
p.a.
1.18m
2.2
Metoraycles
n.a.
318,600
188,000
2.882
3,720
n.a.
R.B.
3.50m
4,090
18,031
7.5m
14m
17.9m
n.a.
1.22m
n.
Length of rellways (km)
8
38,023
2,740
ntl
12
4,482
550
53,187
820
3410
63,012
4,784.8
25,795
4,380
8,456
a
Length of paved highway (km)
2,800
38,219
5,894
1,761
1,0933
n.a.
2.000
862,505
500
1,485'7
1.5m
50,749
5,101.8
n.a.
1.550
2,4
Production & Prices
DOP at market prices
('89, US$3)
n.s.
292.54
22.79
237.713
3.7
78
n.a.
413
0.57
0.05
270.21
n.a.
2.83
21,3
211.9
0.
Per capite income ('89, us$)
n.a.
12,452
202
170³
15,200
-
195
n.a.
371
1,663.8
10,910
330
n.a.
23,033
1,069
4,968
1
GOP in local currency (b)
1987
n.a.
298.4
455.14
3.53
5.68
83.2
n.a.
1.138
0.71
0.37
2,604.4
124,538.9
345,476
23.8
103,423,3
л
1986
R.B.
337.8
465.6
3.88
5.91
71.00
n.a.
1,368
0.72
0.43
2,944
139.452.1
367,389
24.1
127,952.7
-
1989
n.a.
368.6
495.55
n.o.
6.44
76
n.a.
1,573
0.81
0.49
3,488.9
n.s.
391,342
24.4
142,266.9
=
1890 (forecast)
n.a.
0.8.
520.53
11.8.
n.a.
99
n.a.
n.a.
n.a.
0.55
3,633.3
n.a.
417,200
24:3
155,320
I
GDP, real growth '80 (%)
n.e.
3.3
6.2
1ˢ.
2.7
-11,4
n.a.
13.8
12.5
2.3
a.1
7.4
6.1
2
a.7
1990 (forecast)
n.e.
2
5.02
n.a.
n.a.
7.4
n.a.
n.a.
n.a.
2.5
4.5
6
4
2
9.0
% avg. GOP growth '85.89
n.a.
3.7
4.02
8.321
п.а.
-2.44
n.p.
11.6
1,7
a.s
B
8.13
4.52
X
10.4
Agriculture " % GDP
85.327
4.2¹⁸
37.80
46
n.a.
28
n.a.
33
23.24
0,3
33.04
4,333
2.6
n.a.
10.2
f
Manufacturing as % GDP
31.827
15,918
9.94
B
n.a.
10
n.a.
21
11.4
20.1
28,7
12.06'
29.2
n.s.
31.3
Gross capital formation
as % GOP
n.a.
n.a.
10.08
6
n.a.
142
n.a.
25.5
n.a.
26.7
22.0
27.54
30.9
n.a.
34.5
Consumer prices (% rise)
1989
n.a.
6
8
8.5
n.a.
38.77
n.a.
17.8
8.1
10.1
8
6.97
2.7
n.a.
6.9
1890 (foracaal)
n.B.
6.5
9.3
8.5
n.s.
n.a.
200
3.3
a
9.5
13.5
8.11 set.
1.6
n.a.
9.0
GDP deflater '80 (% change)
n.a.
5.7
7.1
n.a.
M.B.
n.e.
Л.П.
3.7
n.a.
10.8
n.a.
n.a.
1.5
n.a.
4.7
Money growth '69 (M2. %)
n.a.
22.8
16.27
35
n.a.
49.43
n.a.
16.2
1020
19.9
18.4
14.7
9.9
n.a.
19.8
1 All universities & colleges have been closed since June 1983 21088 1988 "1984 1987 "1988 "M3 "Incl. forestry 14 Registered private cars & taxis
16 Registered buses, light buses & goods vahicles 16 British section of the Kowloon-Canton Railway Length of public roads "Market prices 20M3 21 1983-88 SEXOI. East limor 26 1978
" 1988-89 target 25 1984-88 29 Peninsular Malaysia only
Bowl
6
FAR EASTERN ECONOMIC REVIEW
S #:20 CCITT
WASS:S
SENT BY:HERITAGE FOUNDATION-1 ;12- 9-91
982
238.8
0.017
330.4
0.298
1,564
147.18
270.5
802
462.8
300
0,825
65.5
36
518
332
Area ('000 km2)
21.5
a
n.a.
16
n.D.
0.7
18
1.5
20.7
3
41
1.9
35.93'
28
50
20
% cultivated
CS.4
40
n.a.
80
n.s.
7
37,8
28.8
0.8
80
52.87
4.5
22,2
64
27
31
% forest
C.1
R.B.
all
-
n.a.
78.8
18.4
35.1
0.8
2
1.4
n.m.
n.a.
n.e.
8
15
% pesture
Population
42.9
4.0
0.0
17.9
0.2
2.2
16.1
3.3
114.5
4.0
65.7
2.7
17.2
20.2
88.7
70.2
Total 1990 (m)
1.0
2.5
1.5
2.6
3.7
2.8
2.5
0.8
3.0
2.7
2.5
1.0
1.5
1.5
2.8
% average annual growth '82-'09
230
5.0
0.9
21.8
0.3
2.8
25.3
3.5
149.1
E.1
182.7
8.0
19.4
22,1
62.7
88.3
Projected year 2,000 (m)
72
28
47
28
18
25,
29
82
23
26
27
47,
47
25
Years till population doubles
70
16
97
35
26
52
7
84
28
13
you)
22
20
Urbsn population as % of total
0
18
3
5
9
6
17
a
13
12
a
Death rate per 1,000
16
41
18
30
46
36
42
17
44
39
33
20
39
Birth rate par 1.000
30
110
8
30
75
50
112
10.0
110
59
48
0.9
22.5
17
39
80
Intent mortality par 1,000
27
43
23
36
45
41
42
24
44
41
39
28
35
28
&
42
% under 15 years
AS
47
76
06
81
55
52
74
58
54
84
70
74
B0
BB
Life expectancy
Students
4.35m
495,375
19,054
2.33m
32,8203
2.61m
421.394
0.52m
382.093'
0.63m
287,833
12m
Frimary
502,800
6.00m
4.55m
00,2261
31,917
1.35m
7,203*
064,000
233,843
$20,000
51,189°
$:49m
188,274
155m
834,000
Secondary
1.10m
20,003'
7.809
$1,000
nil
13,200
81,691
204,034
150,549
7,137°
1,45m
60,756
29,748
535,004
502,200
182,000
University
SW
Workforce
17.9
1.85
0.22
7.05
0.09
0,443
7.5
1,471.3
31.82
0.21"
23.3
1.81
6.4.
8.32
30.5
32
Total (m)
42.4
17.8
R.S.
27.6
n.o.
25.6
6.3
86.6
20.81
58"
$8.99
22.8
28.4
23.00
11
% commercs, services
27.6
1.5
38.7
17.3
12.8
22.9
n.a.
17.3
18.54
g.
18.48
28.9
13.4
32.38
11
% manufacturing
12.5
85
0.0
30.8
17.1
0.5
91.8
10.8
51.18
273
45.2011
0.45
47.1.
12.20
58.4
72
% agriculture, fishing
5.a
0.6
8.8
6.0
2,8
7.8
0.7
6.3
6.39
6ª
4.22
6.8
57
8.78
2.6
3
% construction
4,4
n.s
n.a.
13.5
n.a.
27.7
1.0
28.3
n.a.
143
n.a.
5.5
10.85
6.2
14
% govt. and public authorities
Social
336
362
400
550.1
1,484
87
3.928
122
1,680
728
684
268
3002
232
683
284
Persona per hospital bed
938
26,510
951
2,667
6,451
870
19,674
463
1,848
11,209
4,648
968
4,973
1,000
Persons per doctor
08
41
n.a.
76
95.4
n.a.
35
n.a.
28
48°
87.0
872
02.0
70
90 est.3
Literacy rate (%)
n.a.
n.a.
n.a.
1,741
5,890
123
57
n.w.
01.8
55"
4,349
533
441
5,521
n.a.
n.a.
TV receivers ('000)
n.a.
307
n.a.
443
28,201
223
2,007
n.a.
n.s.
50'
5,618
105.12
1,127
4,000
n.a.
n.a.
Radios ('000)
19.000
8.2
80.56
1,537
M.D.
62.6
76.8
n.a.
808
70e
220
1,240
106
7,883
1.200
140-150
Telephones ('000)
2.03m
15,800
25,295
1.49m
509
n.a.
16,315
1,802,600
266.200
11,796°
1.27ml
270,000
165,737
2.04m
637,243
n.s.
Care
1.18m
2,250
3,461
n.a.
358
n.a.
10.996
307,173
M.C.
29,0214
596,209
180.564
n.a.
817,174
1.71m
R.E.
Trucks and commercial
1.22a
fl.a.
n.a.
2.70m
2,000
n.a.
29,077
82,328
530,100
1,204
288,902
129,096
307,588
10.21m
4.15m
n.a.
Matercycles
5,455
all
nil
3,644
nil
1,876
62
4,029
8,775
all
639
n.a.
1,677
2,533
3,735
2,500
Length of rellways (km)
1.000
2,447
n.a.
21.330
nil
900
2,898
52,370
58,710
950
160,069
2,838
28,749
17,178
46,000
13,000
Length of paved highway (km)
Production & Prices
WID
GOP at market prices
219.9
0.676
3.08
28.42
0.039
n.a.
2.98
40.1
45
3.57
44.36
29.19
7,009
140.06
08.95
0.08
(88, US$b)
4.0e8
1588
6,877
8,659
490
8803
160
10,588
435
937.9
808
10,810
417
6,889
1,238
200 est.
Per capita Income ('89, US$)
GOP In local currency (b)
08.428.3
n.e.
18.07
80.0
0.71
n.a.
69.5
60.2
675.4
2.6
708.37
42.01
198.7
8,222.99
1,253.2
205
1987
17.962,7
n.a.
20.89
56.3
0.77
8.9
77.4
63.8
773
3.1
820.83
49.36
221.9
3,496.95
1,507.0
217 ast.
1958
12,288.0
n.a.
24.75
71.8
0.84
n.s.
64.9
68.2
872.6
3.3
964
58.31
252.7
3,878.65
1,795.8
235
1989
56,320
n.a.
n.a.
77.88
0.93
n.a.
n.a.
72.6
987.2
n.s.
n.s.
@@
n.a.
4,254.85
n.a.
n.a.
1990 (torecast)
6.1
4.0
5.7
7.8 ast.
(1,B.
n.s.
2.01
1,4
4.8
3.1
5.00
8.2
2.3
7.57
12.2
8.2
GDP. real growth '89 (%)
0.0
5.2
n.a.
8.3
R.S.
n.e.
3.5
1.0
6.2
-1,1
3
8
A.S.
5.22
0.5
n.s.
1990 (foresset)
10.4
n.a.
17.7
n.a.
n.o.
n.s.
4.9
0.8
n.a.
5.3
2.81
0
4.1
9.99
9.95
5,1
% avg. GDP growth '85-'89
10.2
52.6
n.B.
n.a.
n.a.
n.B.
54
8.3
4
30.3
27.08
0.3
25
4.59
15.2
39.3
Agriculture B7 % GDP
31.3
10.0
n.a.
n.a.
n.a.
n.e.
48
13.5
7.1
10
28.30
30.1
15.3
35.59
25.4
31.9
Manufacturing as % GDP
Gross capital formation
34.6
n.a.
19.8
n.a.
n.a.
n.a.
15.6
19.7
14.55
20.5
17.25
86.5
21.8
22.05
30.5
n.a.
88 % GDP
Consumer prices 1% rise)
5.0
8D
8.3
4
n.a.
n.a.
11.9
7.2
10.72
5.4
10.50
2.4
11.8
4.41
5.4
35
1989
9.0
n.a.
N.R.
3.8
n.a.
n.a.
14
5.0
6.89
4.5
14
4.5
n.a.
3.99
T
50
1990 (forecest)
4.7
n.a.
11,3
n.s.
R.B.
n.a.
8.0
5.3
7.57
all
10.53
2.5
9.7
3.11
5.2
n.a.
GOP defisior '88 (% change)
10.8
n.s.
21.7
13.5
n.a.
n.a.
24.2
3.8
7.2
7710
29
18.1
12
14.3
20.2
242'
Money growth '89 (M2, %)
Sources: 1990 World Population Data Shael of the population Reference Bureau, Inc. Washington: Review Correspondents.
For delinitions ⑉ page 4.
CCITT G3;# 6
7
2025442260-
: WALLS
SENT BY:HERITAGE FOUNDATION-1 :12- 9-91
REGIONAL
PERFORMANCE
FIGURES
Public Expenditure
Central govt. expenditure (USSb)
1989
n.a.
59
1.91
0.14
n.e.
1.2
R.S.
79,2
0.38
7,250m
48.3
12.67
007.4
n.a.
30.4
0.17
1080 (budget estimate)
n.a.
73.77
2.1
0.12
n.a.
n.a.
n.a.
70.4
0.37
9,372m
62.5
14.29
500.8
n.a.
34.6
0.21
Defence as % GDP
n.a.
2.3
1.94
n.a.
n.a.
7.0
N.S.
1.6
8.5
n.a.
0.897
26.8
4.7
n.a.
Defence 88 % budget
n.B.
9.7
14.82
n.B.
0.8:
8.3
6.8
12.5
16.7
3.47
8.3
n.e.
27.2
0.0
Education as % budget
n.a.
7.5
14:00
16.8
14.6
19.4
17.8
3.6
6.44
7.7
n.a.
22.0
a.4
Central govt. revenue (USSD)
1989
n.s.
75.30
3.9
75.7
0.333
8,308m
29.8
13.54
607.4
n.a.
35.9
0.1"
1990 (budget extimate)
506.8
40.6
n.a.
68.5
0.321
10,863m
33.08
18.94
a.s.
0.21
% personal Income tax
n.a.
M.
11.8
4.2
19.00
38.5
0.3.
14.8
11.6.
39.98
% company Income tax
na
25.7
5.0
n.a.
22.4
n.s.
15.3
n.a.
% customs, excise, sales, VAT
50.2
40.93
5.7
41.5
35.24
16.6
n.a.
50
13
Budget surplus or deficit
as GDP
1,8
3.6
8.5
-3.7
-1.3
n.o.
2.2
$10.0
Foreign Trade
Merchandise exports (ussm)
1988
630
2,037
258.37
11.5
47,516
359.38
83,165
12,844
19,824
204,917
1,800
59.550
0,4.
1988
037.58
$01.71
73,142
14,208
23,830
275,775
2,050
61,410
07
1920 (ast.)
n.a.
51,285
15,528
R.B.
A.O.
2,100
63,500
n.a.
% manufactures
n.a.
3.98
88
73.8
49.77
85.7
n.a.
84.5
45
% food and farm products
36 est
6
12.5
60.85
2
17.2
8.77
0.8
n.a.
4.1
42
% metals and minerals
60 ast
18.58
-
10.7%
18.71
0.2
5.7
38.17
0.6
n.a.
1,4
no
4.85
Merchandise Imports (US$m)
1988
n.e.
393.9
63,889
19,812
14,311
187,354
2,000
46,200
n.a.
1959
n.a.
390
action
24.1
03:142
560.72
72,151
23,848
17,374
210,847
2,600
53,810
230
1990 (ast.)
n.a.
3,750
49,820
61.587
26,235
n.a.
n.a.
2,800
65,000
n.a.
% plants capital aquipment
n.e,
46.87
BQ
00.8
18
15.3
27.10
12,5
n.s.
30.4
0.0
% raw materials and food
n.g.
23.92
57
124.0
PAY
14.7
43.82
28.4
n.o.
53.0
11.11.
% energy
n.e.
4,8
#
R.B.
16.5
12.8
14.52
34.9
n.a.
0.0
01.2
Imports and exports 85 % GOP
n.s.
27
23.15
18
260.2
14.1
A.M.
39.9
15
69
35
% energy imported (net)
n.s.
n.a.
1.48
38.8
n.a.
82.3
10
85.5
n.D
% lood imported (net)
n.a.
n.a.
1,61
5
n.a.
28
n.a.
4.0
0.0.
% trade with Pacific region
(excl. us, Japan)
n.a.
n.a.
n.a.
20
10.9
36.2
42.87
28.3
n.a.
9.8
now
% trade with Japan
7.8
11
n.a.
32
8.8
23.02
4.119
8.4
14.7
N.B.
% trade with US
0.8
9.9
n.a
14.9
13.58
26.1
nil
17.4
n.s.
Terms of trade Index change (%)
1988
n.a.
8.9
15.1
B.O.
99.5
n.s.
2.3
n.a.
2.8
п.п.
1989
n.a.
-4.3
-9
n.a.
n.a.
7.4
89.3
n.a.
-4.2
n.a.
7.6
0.2.
1990 (set.)
n.e.
n.a.
-10
n.a
80.8 est:
n.a.
n.a.
n.a.
n.a.
-1.8
n.a.
Number of visitors 1988
n.a.
2.1m
n.w.
1,450
n.a.
2,854
3,272
24.8m
251,000
5.40m
1.63m
2.34m
n.a.
2.7m
2,52
Services receipts (USSm)
Tourism 1988
n.a.
3,645
8.7
2.01
n.a
8.36
6.a.
2,070
125.57
4,243
1,027
2,393
n.a.
3,265.2
11.24.
1989
n.a.
3,590
16.9
1.9a
n.m.
18.31
0,28
n.a.
164.26
4,880
n.a.
3,143
n.a.
3,311
0.10
Investment 1988
n.a.
3,385
54.9
0.4
n.m.
n.s.
n.a.
2.344 not
14.99
3,110.7
74,837
n.a.
985.0
0.0
1988
n.a.
4,527
78.8
n.a
n.a.
n.a,
n.a.
2,013 net
18.68
2,285.3
101,785
n.a.
1,800
R.D.
Transfers 1988
n.a.
9,341
768
0.8
n.a.
n.a.
n.s.
200
58,74
n.a.
16,524
n.a.
1,608.8
n.a
1989
n.a.
3,652
636
4.8
n.B.
n.a.
n.s.
214
64.25
n.a.
18.090
n.a.
1,151,8
0.2
Services payments (US$m)
An
Tourism 1088
n.a.
3,383
77.1
n.s.
n.B.
n.e.
n.m.
833
34.34
2,811
270
n.a.
18,682
n.p.
1,353.3
11.11
1889
n.a.
3,927
113.5
a.a.
n.a.
n.a.
n.a.
n.a.
41.97
3,178
378
n.a.
22,490
n.a.
2,356
11.0
Investment 1988
n.a.
13,693
187.9
n.a.
n.a.
n.a.
n.a.
850
46.97
n.a.
2,648
n.a.
53,805
n.a.
2,928.3
n.s
1989
n.a.
17,003
187,4
n.a.
n.a.
n.a.
n.2.
N.M.
53.35
n.a.
2,917
n.s.
78,343
n.s.
2,845
0.8
Transfers 1988
n.a.
1,597
n.a.
n.a.
n.a.
n.a.
n.o.
5,382
29.90
n.a.
12
n.s.
22,950
n.a.
469.4
5.0
1989
n.a.
1,727
n.s.
n.a.
n.a.
n.m.
n.a.
426
20.83
N.R.
26
n.a.
25,845
n.a.
1,127.5
11.00
Current-account balance (USSM)
1988
B.H.
14,095
-1,110.B
41,93
п.в.
n.a.
n.a.
-3,802
+36.42
n.a.
-8,810
1,707
79,831
n.a.
14,150.7
-12:
1989
4
18,452
-1,375.8
$3.9
n.a.
n.a.
n.a.
-4,317
-21.78
n.a.
-8,640
1,669
57,157
n,a,
5,054.8
-1BE
1990 (forecast)
n.a.
n.s.
-1,558.8
n.a.
n.s.
n.a.
n.a.
n.a.
n.a.
n.a.
-11,600
n.a.
n.s.
n.a.
-1.000
:130
Capilal-account balance (US$m)
1988
n.a,
11,472
1,327
n.a.
n.o.
n.a.
n.a.
+7,132
-50.77
n.a.
-2,970
n.a.
-130,030
n.a.
-2,732.8
5,4
1989
n.a.
12,073
1,387
n.o.
n.B.
n.a.
n.a.
-9,179
-8.11
n.a.
+2,720
n.a.
-89,245
n.a.
-3,362.6
0.0
1990 (forepast)
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
p.s.
n.a.
a.s.
-500
n.a.
n.e.
n.B.
D.A.
n.n.
Foreign reserves (US$m)
503.83
17,358
521
57.92
27,000
$00-400 mi.
n.o.
15.000
228.98
n.a.
4,150
6,055
75,313
n.a.
15.540
16.1
Public foreign debt (ussm)
1,429"
97,437
8,885.7
73.52
n.a.
4.8b
n.a.
40,000
327.4
n.a.
89,700
41,026
all
4,000
29,372
1,10,
Public debt-service ratio (%)
5.6 est.
n.e.
22.59
65.1
n.a.
80
n.a.
10
11
n.a.
29.3
18.64
nil
n.s.
10.9
14
21985
31988
1987
"Electricity
Timber
&
coffee
"Tin
&
gypsum
*1986
121nol.
health
13/ficl.
energy
10
Percent
trade
with
China
22
Excl.
Napalese,
Sri
Lankan
nationals,
Bangladoshl
nationals
With Soviel Union Including cradits 24 Finance Ministry ast., November 1980
8
FAR EASTERN ECONOMIC REVIEW
2025442260->
: Wd82:S
SENT BY:HERITAGE FOUNDATION-1 ;12- 9-91
CCITT G3;# 7
SAMPLEW
Mongoli
Guinea
Public Expenditure
Central govt. expanditure (US$b)
J0.4
0.17
n.o.
9.03
0.071
1.8
0.65
17.5
10.58
1.05
9.58
4.05
2.3
48.03
10.3
1.34
1989
34.8
0.21
n.a.
8.94
n.a.
1.3
0.63
17.4
11.48
1.19
4.88
2.6
31.8
11.7
n.a.
1990 (budget estimate)
4.7
n.a.
1.2
1.0
3.34
1.8
3,1
5.20
2.7
n.a.
Dalance 88 % GDP
n.a.
n.s.
n.a.
n.a.
27.0
n.a.
n.8.
n.a.
15.3
B
5.8
4.5
25.7
4.80
10
20.1
18.1
n.a.
Defence as % budget
22.0
5.4
n.b.
n.a.
13.7
16.8
12.5
14.6
n.a.
17.7
2.412
Education as % budget
Central gevt. revenue (USSE)
35.0
0.18
0.48
9.15
0.045
1.8
0.33
18.9
6.98
0.88
1989
40.6
0.21
n.a.
0.04
0.078
1.3
0.32
18.8
8.03
n.B.
1990 (budget estimate)
14.0
n.a.
n.a.
N.B.
all
0.6
7.1
47.5
% personal income tax
16.3
n.s.
n.n.
n.s.
all
33.1
2.2
9.4
% company Income tax
50
10
n.a.
n.a.
n.a.
59.7
85.8
28.2
70
% customs, exclas, sales, VAT
Budget surples or deficit
2.2
-13.8"
n.a.
n.a.
4.2
n.a.
-7.6
-1.5
as % GDP
Foreign Trade
Merchandise exports (USSm)
3,659
R.B.
1,492.9
20,146
44.6
702
164.3
8,209
1988
1,410
07
1,843.1
24,912
n.a.
72222
183.8
9,369.5
1989
1.800
n.a.
n.a.
26.700
n.a.
n.a.
214.3
2,093.8
1990 (est.)
14.5
468
92.7
69.3
n.s.
15.72
65
24.4
% manufactures
4.1
42'
1.7
n.a.
R.B.
393
34
44.5
46
% food and farm products
60
2.1
11.1
n.a.
41.73
1
8.9
1
% metals and minarals
Merchandise Imports (US$m)
200
n.a.
1,280.5
14,775
94.6
1,150
635.9
7,005.1
0,391
1.10
8,159
45,427
2,240
49,655
19,565.9
2,545
1988
010
230
1,479.3
21,120
n.a.
1,82733
645.2
7,167.1
7,034
1.20
10,619
51,113
2,243
52,240
28,418.9
n.a.
1889
000
n.z.
n.a.
23,173
n.a.
R.H.
714.3
9,420
5,035
1.35
11,502
n.a
n.e.
58,872
31,700
n.a.
1990 (est.)
6.4
n.a.
10.3
n.a.
n.a.
30.2
40
26.0
3a
38
28.38
44.2
13.8
10.4
$6.5
33
% plant, capital equipment
3.6
N.W.
74.1
n.a.
n.w.
10.8
25
18.3
33.58
31
46.97
4.8
82.4
72.1
88.1
48.412
% raw materials and food
.0
n.a.
4.2
n.a.
n.a.
33.8
7.3
6.3
16.75
10.5
14.27
13.8
10,4
5
8.7
n.a.
% energy
is
35
n.e.
n.n.
n.a.
n.a.
28
46.5
25.84
61.4
-0.31
532
54
80.71
55.4
n.a.
Imports and exports as % ODP
in
n.n.
0.8
all
n.s.
n.a.
27.2
27,0
13.4
92.9
59.7
n.a.
% energy Imported (net)
.0
n.a.
0.4
n.a.
n.a.
n.a.
12.5
n.a.
2
nil
n.a.
% food Imported (net)
% trade with Pacific region
a
n.a.
47.3
38
n.a.
n.a.
38.70
30
n.a.
(excl. US. Japen)
7
n.n.
7.2
20.2
n.a.
1
19.7
24.2
10.5
% trade with Japan
4
h.S.
22.3
17.2
n.B.
n.B.
16.6
15.7
nil
% trade with US
Terms of trade Index change (%)
a
n.a.
n.a.
2.0
n.a.
n.o.
3.684
5.34
7.7
n.a.
1988
a
n.a.
n.a.
-0.9
n.o.
n.a.
10.42
n.a.
-6
8.77
-12.3
n.s.
1988
en
n.o.
n.a.
-1.0
n.a.
n.a.
n.s
n.e.
R.M.
n.s.
n.s.
1990 (ast.)
in
2,521
5.62m
3.95
109,715
10,000
239,945
001,078
48,010
164,732
2m
4.9m
00,000
Number of visitors 1989
Services receipts (U3$m)
5.2
n.z.
n.a.
n.a.
37.8
n.a.
107.13
,082.6
65,1
2,289
3,060.4
57
Tourism 1988
11
0.13
n.a.
841
D.E.
5
99.01
848.6
197
2,689
3,765.1
n.a.
1988
.0
n.a.
n.a.
n.a.
-10.0
n.s.
19.7
759.5
n.a.
305
69.1
3,281
365.5
n.a.
Investment 1968
If
n.a.
n.a.
n.a.
n.o.
n.a.
21
722.3
n.s.
n.z.
589
864.91
57.5
6,695
$48.6
n.a.
1989
1.8
-287.02
387.9
2,382
233.3
n.a.
n.s.
n.a.
n.a.
10.1
n.a.
115.8
$85.5
n.a.
219.1
775
Transfers 1988
.8
n.a.
A.B.
n.a.
n.a.
n.m.
117.0
570.8
n.a.
217.1
930
-332.93
552.7
2,683
247.0
n.a
1989
Services payments (USSm)
.3
n.a.
n.a.
1,319.63
0.24
0.8
47.5
1,078.7
n.a.
n.a.
70
1,544.08
67.8
4,031
595.8
n.s.
Tourism 1988
6
n.a.
n.a.
1,382.59
n.a.
n.a.
8.3
1,393.0
n.s.
n.s.
77
1,872.06
T7.4
4,022
758.3
n.a.
1989
.3
n.a.
n.a.
n.o.
22.28
n.a.
$.6
2,718.3
n.a.
n.a.
2,354
619.98
234.8
1,852
2,075.5
n.a.
Investment 1960
5
n.a.
n.a.
n.a.
п.в.
n.a.
5.1
2,623.3
n.a.
n.a.
2,716
684.3
221.4
2,775
2,209.7
n.a.
1989
Transfers 1988
n.a.
n.a.
N.B.
0.41
n.s.
5.3
385.3
n.a.
n.a.
3
-287.02
37.7
3.032
30.0
n.a.
6
n.m.
n.a.
n.s.
n.a.
n.a.
10.1
298.4
n.a.
n.a.
2
-332.93
27.7
4,350
33.8
n.a.
1989
Current-account balance (USSm)
-130
п.я.
+1,741
8.4
n.a.
-295.4
-1,180.1
1,682
-235.35
-373
1,353.04
-389.1
10,177
-1,633.7
1,3815
1988
0
-180
n.o.
-146
0.2
n.a.
-310.2
-881.0
1.934
-387.94
-1,465
2,406.17
-285.4
11,384
-2,354.2
n.a.
1989
-100
n.a.
-091
3.8
n.a.
-365.9
-2,700-
1,852
n.a.
-1,600
1,463.27
n.s.
n.o.
-4.3
H.B.
1900 (forecast)
Capital-account balance (USSM)
8
-1,844.07
n.a.
n,a,
299.4
321.1
1.209
111.92
492
804.58
281.2
-7.612
+2,835.7
9795
1988
n.a.
n.p.
$
n.b.
n.a.
+265.93
n.a.
n.a.
411.5
759.3
1.952
327.18
1,527
1,979.47
293.1
-8,249
+5,954.5
n.a.
1989
n.a.
N.H.
n.a.
n.e.
0.8.
290.7
8,100
1,444
п.я.
1,879
1.755.9
0.0.
n.a.
n.a.
n.a.
1990 (foresset)
16.15
0,002
28.8
415.4
3,199.8
135
360
2,234.17
22,697.13
584.7
63,000
12,300
14.0#
Foreign reserves (US$m)
0.0.
n.s.
1.100
n.A.
14,000
53.58
167,007
883.2
11,761.1
15,600
988.6
26.1
nil.
3,988.4
1,148
11,400
12.04
Public foreign debt (US$m)
14
n.a.
8.5
5.7
n.a.
11.0
21
15.7
12.4
29.7
n.a.
24.4
11,3.
10.5
T73
Public debi-service ratio (%)
For definitions see page 4,
CCITT G3;# 8
Wd62:S
SENT BY:HERITAGE FOUNDATION-1 ;12- 9-91