DATE=5/3/99
TYPE=CORRESPONDENT REPORT
NUMBER=2-248908
TITLE==NORTH KOREA ECON (L - ONLY)
BYLINE=MAX RUSTON
DATELINE=UNITED NATIONS
CONTENT=
VOICED AT: 

INTRO:  THE CHIEF U-S NEGOTIATOR WITH NORTH KOREA SAYS HE EXPECTS
THAT COUNTRY'S ECONOMY TO BEGIN IMPROVING SOON -- A DEVELOPMENT 
THAT COULD HELP IT OPEN TO THE OUTSIDE WORLD.  V-O-A 
CORRESPONDENT MAX RUSTON REPORTS FROM NEW YORK.

TEXT:  AMBASSADOR CHARLES KARTMAN IS INVOLVED IN THE MOST 
DIFFICULT NEGOTIATIONS NOW UNDERWAY WITH NORTH KOREA.  THEY 
INCLUDE TALKS AIMED AT ESTABLISHING A PEACE TREATY TO FORMALLY 
END THE KOREAN WAR AND EFFORTS TO PREVENT NORTH KOREA FROM 
BUILDING NUCLEAR WEAPONS.

MR. KARTMAN SAYS IT IS TOO EARLY TO TELL IF PROGRESS HAS BEEN 
MADE IN THOSE NEGOTIATIONS.  BUT HE SAYS HE DOES EXPECT THE 
CLIMATE SURROUNDING THOSE TALKS TO IMPROVE OVER THE NEXT YEAR.  
THE REASON, HE SAYS, IS THAT NORTH KOREA'S ECONOMY APPEARS TO 
HAVE BOTTOMED-OUT AND THE COUNTRY'S LONG-ISOLATED GOVERNMENT IS 
NOW PREPARING FOR IMPROVED ECONOMIC PROSPECTS, ALONG WITH 
EXPANDED TIES WITH OTHER COUNTRIES.

                       /// KARTMAN ACT ///

         FOR NORTH KOREA THIS IS PROBABLY A TRANSITION YEAR.  THE
         TRANSITION BETWEEN THE NORTH KOREA WHICH WAS DEATHLY 
         AFRAID OF ENGAGING THE OUTSIDE WORLD AND UNABLE TO GIVE 
         UP SOME OF ITS OLD DOGMA OF THREATENING THE SOUTH, 
         HOLDING THE U-S AS THE DEVIL -- THE OLD KIM IL-SUNG 
         YEARS, AND THEN THE YEARS OF MOURNING -- TO NEXT YEAR, 
         WHICH WILL BE SOMETHING A BIT DIFFERENT, PARTICULARLY ON
         THE ECONOMIC SIDE, OF FIRMLY UNDER THE CONTROL OF KIM 
         JONG-IL, KIM IL-SUNG'S SON, WITH MUCH MORE ROBUST 
         RELATIONS WITH ALL OF THE KEY OTHER FOREIGN ACTORS.

                         /// END ACT ///

MR. KARTMAN SAYS THAT BASED ON HIS KNOWLEDGE OF NORTH KOREA, IT 
IS CLEAR THAT THE GOVERNMENT REALIZES IT MUST IMPROVE THE 
COUNTRY'S ECONOMY, WHICH HAS BEEN DETERIORATING STEADILY OVER THE
PAST DECADE.  HE SAYS ONE HAS TO ASSUME THAT NORTH KOREA'S PLANS 
TO IMPROVE THE ECONOMY INCLUDE MEASURES TO INCREASE ENGAGEMENT 
WITH THE REST OF THE WORLD, PARTICULARLY IN THE ECONOMIC AREA.

EXAMPLES OF THIS INTENTION, HE SAYS, INCLUDE PLANS TO SIGN A 
TREATY OF AMITY WITH RUSSIA AND PLANS FOR HIGH LEVEL VISITS TO 
BEIJING OVER THE NEXT FEW MONTHS -- BOTH OF WHICH ARE EXPECTED TO
HAVE STRONG ECONOMIC COMPONENTS.

MR. KARTMAN SAYS NORTH KOREA HAS NOT YET MADE ITS INTENTIONS 
CLEAR IN ONE OF ITS MOST IMPORTANT OPPORTUNITIES FOR ECONOMIC 
DEVELOPMENT -- THAT IS SOUTH KOREA'S OFFER OF WIDE RANGING 
ECONOMIC ENGAGEMENT.  MR. KARTMAN SAYS ACCEPTANCE OF THAT OFFER 
WOULD BE THE SINGLE MOST IMPORTANT MOVE NORTH KOREA COULD MAKE TO
BRING ABOUT WHAT HE CALLS "THE BEGINNING OF A NEW SITUATION."  
MR. KARTMAN MADE THE REMARKS AT AN ECONOMIC FORUM AT THE NEW 
YORK-BASED ASIA SOCIETY.

NORTH KOREA HAS REJECTED MOST AID OFFERS FROM SOUTH KOREA IN THE 
PAST.  DIPLOMATS SAY NORTH KOREA IS SUSPICIOUS OF THE SOUTH AND 
BELIEVES IT WILL TRY TO USE AID TO UNDERMINE THE GOVERNMENT.  
THEY SAY ACCEPTANCE OF AID FROM THE SOUTH WOULD ALSO WEAKEN NORTH
KOREA'S DOMESTIC CLAIM THAT IT IS ECONOMICALLY SUPERIOR TO THE 
SOUTH.  (SIGNED)

NEB/UN/MPR/LSF/PHW/PT

03-May-99 5:46 PM EDT (2146 UTC)
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Source: Voice of America
.