DATE=9/17/1999
TYPE=CORRESPONDENT REPORT
TITLE=CLINTON-KOREA SANCTIONS (L)
NUMBER=2-254016
BYLINE=DAVID GOLLUST
DATELINE=WHITE HOUSE
CONTENT=

VOICED AT:

INTRO:  President Clinton is easing restrictions on U-
S trade and finance with North Korea in return for a 
commitment by Pyongyang  not  to test long-range 
ballistic missiles.  VOA's David Gollust reports from 
the White House.

Text:  The easing of sanctions will allow trade in 
consumer goods, the transfer of funds between U-S and 
North Korean citizens, and the relaxation of 
restrictions on air and sea transportation for 
passengers and cargo.

The announcement came in a written White House 
statement and followed high-level talks between the 
two countries capped by six days of discussions 
earlier this month in Berlin.

On the basis of those meetings, the statement says, it 
is the United States' "understanding" that North Korea 
will continue to refrain from testing long-range 
missiles as, quoting here, "both sides move toward 
more normal relations."

Under questioning, White House spokesman Joe Lockhart 
made clear the deal would be off if the North Koreans 
went ahead and tested their long-range missile 
prototype, which has a potential range in excess of 
five thousand kilometers:

            ///LOCKHART ACTUALITY///

      This is a very conditional lifting of sanctions. 
      I think, as we've made very clear, if  they 
      resume testing, the sanctions will be put back 
      on.

            ///END ACT///

The easing of trade and investment sanctions does  not 
affect U-S counter-terrorism or weapons' non-
proliferation controls on North Korea, which remain in 
effect and prohibit sales of weapons and dual-use 
items and most types of U-S aid. 

The chief U-S negotiator for the deal - former Defense 
Secretary William Perry - has briefed leaders of 
Congress on the arrangement, which is already under 
attack from some Republicans who argue, among other 
things, that Pyongyang continues to stage hostile acts 
against South Korea.

But spokesman Lockhart says South Korea and Japan have 
been involved in the negotiating process and are quite 
supportive of the U-S decision, which he says will 
enhance regional security:

            ///LOCKHART ACTUALITY TWO///

      I think you have to look at the importance of 
      promoting our relations with North Korea and the 
      influence it has on the Korean Peninsula. And I 
      think it is vitally important to the stability 
      of that region that North Korea moves, and 
      continues to  move and refrain from the long-
      range testing.

            ///END ACT///

Mr. Lockhart said the notion advanced by some critics 
that North Korea has successfully blackmailed the 
United States with its threat of missile testing is 
"grossly inaccurate" and that the impoverished North 
has much to gain from adhering to the arrangement and 
expanding trade and development. (Signed)

NEB/DAG/ENE/KL



17-Sep-1999 12:59 PM EDT (17-Sep-1999 1659 UTC)
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Source: Voice of America
.