Neighbors agree to have more talks

SEOUL: Pyongyang and Seoul will hold more talks soon about developing their joint industrial park, Seoul said yesterday, a promising sign for the future of a project seen as the most prominent symbol of cooperation between them.

Two days of discussions ended without agreement when North Korea sought early negotiations on pay rises for its workers at the Kaesong industrial estate.

But they agreed to hold more talks on Feb 1, Seoul's chief delegate Kim Young-Tak told reporters after his return from the estate just north of the heavily fortified border.

Kim declined to speculate on whether the Democratic People's Republic of Korea (DPRK) and the Republic of Korea (ROK) would bring up the issue of wage increases at the next meeting. He said no specific figures were mentioned.

Last June Pyongyang stunned Seoul by demanding a wage rise to $300 a month for the employees, from around $75 currently.

It dropped that demand last September in the latest of a series of peace overtures after months of tensions.

The ROK says other matters, including easier cross-border access to Kaesong and housing for DPRK workers, should be handled first.

"Wage increases must be preceded by increases in productivity," Kim said. "We don't think productivity at Kaesong is up to what we believe it should be."

Kaesong, the last reconciliation project still functioning, was designed to bring together the DPRK's cheap but skilled workforce and the ROK's capital and expertise.

Around 42,000 DRPK workers work at 110 ROK-funded plants, producing cookware, textiles, electronics and other light industrial goods.

But its operations have often been hit by political tensions, with the DPRK expelling hundreds of ROK staff and intermittently restricting access in 2008.

Analysts say the DPRK, hit harder by international sanctions following its nuclear and missile tests last year, seems willing to promote economic exchanges with the ROK despite its angry broadside last Friday.

Pyongyang's National Defence Commission, the country's top decision-making body, threatened to cut all dialogue and cooperation unless the ROK apologizes for an alleged contingency plan to handle unrest in the DPRK.

The commission also warned of a "holy war" against the ROK should there be any attempt to carry out the plan.

ROK media has reported the existence of the contingency plan, but it has not been confirmed by the government.

ROK's Defense Minister Kim Tae-young called for a pre-emptive strike on the DPRK if there is clear indication the country is preparing a nuclear attack.

Envoys from neighboring nations, meanwhile, are seeking to convince the DPRK to return to nuclear disarmament negotiations.

Pyongyang quit the talks involving China, Japan, Russia, the ROK and the United States last year but has shown some willingness to return to the negotiations. ROK envoy Wi Sung-lac was to meet with US officials in Washington to discuss reopening the talks.

AFP-AP

(China Daily 01/22/2010 page11)