News

ACCESSION NUMBER:382159

FILE ID:PO1302

DATE:03/08/95

TITLE:STATE DEPARTMENT REPORT, WEDNESDAY, MARCH 8 (03/08/95)

TEXT:*95030802.PO1

STATE DEPARTMENT REPORT, WEDNESDAY, MARCH 8

(WTO director general, Korea, Croatia) (610)

NEWS BRIEFING -- Acting spokesman Christine Shelly discussed the following

topics:



ALLEGATION ABOUT WTO CANDIDATE SAID WITHOUT BASIS

Responding to a question, Shelly said an allegation reported in the March 7

Journal of Commerce concerning former Italian Trade Minister Renato

Ruggiero, a candidate for World Trade Organization (WTO) director general,

"appears completely without basis."



Claiming that the U.S. government has intelligence which is damaging to

Ruggiero's candidacy, the Journal of Commerce said he was accused of

helping some Italian companies escape reprisals for evading the U.N. trade

embargo against Iraq.



While reminding reporters that "we don't comment on intelligence reports,"

Shelly added, "I can say that the allegation...appears completely without

basis.  We do not approve of any attempt to affect the reputation of

individuals by leaks and innuendos."



"We have full respect for those who have offered their candidacies as

international public servants in the WTO," she said.  "As to the general

issue regarding the filling of that position, the U.S. is continuing to

look at all options.  We have not endorsed or rejected any candidate for

the WTO director general's position.  We do feel strongly that the decision

on the WTO DG position should be made by consensus."



NORTH KOREAN OBJECTIONS TO REACTOR SAID NOT COINCIDENTAL

The acting spokesman said North Korea's continuing public objections to a

South Korean model light water reactor (LWR) are probably not coincidental.



Commenting on Pyongyang's statement in Geneva March 8, Shelly said, "We've

seen the report.  As you know, the KEDO (Korean Energy Development

Organization) talks start today in New York, so the timing on this is

probably not just coincidental."



The United States, South Korea and Japan were instrumental in forming the

multinational Korean Energy Development Organization which will provide LWR

technology to North Korea in return for Pyongyang's commitment to freeze

1ts nuclear program under the U.S.-North Korean agreement signed last

October.



"Our position on this remains exactly as it was," Shelly emphasized.  "There

is no alternative" to the South Korean reactors.  The United States

believes that KEDO "will determine that the light water reactor should be

and will be of the Republic of Korea model, which is the only viable option

as far as we, and I believe the rest of the international community, see

it," she said.



CONTINUED INTERNATIONAL PRESENCE IN CROATIA DISCUSSED

The acting spokesman said there are indications that Croatian authorities

have been discussing "ideas related to a continued international presence"

in Croatia, despite President Franjo Tudjman's announcement that he wants

the United Nations Protection Force (UNPROFOR) to withdraw when its current

mandate expires on March 31.



Shelly's comments were prompted by questions about the visit to Zagreb

earlier this week by Richard Holbrooke, assistant secretary of state for

European and Canadian affairs.  Holbrooke met with Tudjman, Croatian

cabinet officers and United Nations officials.



She rejected media reports that suggested Holbrooke's mission was a failure.

 "We believe that progress has been made on issues of concern to all sides

on this.  No final decisions have been reached, and we have every

expectation that the discussions on this will continue."



Citing other reports from the region and from U.N. sources, she said "there

are some indications that Croatian authorities...have been discussing ideas

related to a continued international presence there."



Shelly said the United States has discussed Holbrooke's trip with its

partners in the five-nation Contact Group and will be consulting at the

U.N. Security Council within the next couple of days on options that are

available and steps that should be taken.



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