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Koreas to discuss joint project; North's guns quiet

SEOUL (Reuters) - Envoys from the two Koreas were set to discuss on Monday the operations of a joint industrial park, days after Pyongyang rattled the peninsula by firing artillery near a disputed sea border between the rivals.
The meeting takes place as a senior U.S. diplomat heads to the region for talks aimed at prodding the reclusive North back to international nuclear disarmament discussions and ahead of a rare visit by a senior U.N. envoy to Pyongyang next week.

Analysts say pressure is mounting on the destitute North to end its year-long boycott of the six-country, disarmament-for-aid talks. Pyongyang may try to better its bargaining position with military moves that underscore the threat it poses to the economically vibrant region.
North Korean artillery, which last week fired hundreds of rounds into its waters on its side of the sea border off the west coast, was silent over the weekend.
Envoys from the South were scheduled to cross the heavily armed border for talks over the Kaesong industrial park, the last joint project between the states where South Korean firms use cheap North Korean labor and land to make goods.
The park is one of the few sources of legitimate foreign currency for the North's leaders who have been pressing the South to increase rent and wage payments for its nearly 40,000 workers at the complex located about 70 km (45 miles) northwest of Seoul.
Markets were spooked when the North began the live-fire artillery exercise on Wednesday and by Seoul's return fire. Shares in Seoul briefly retreated and the won fell against the dollar, but the moves were quickly reversed.
Market players said the subsequent days of artillery shooting have had no significant impact on trading, but served as a reminder of the risks of investing on the peninsula.
U.S. Assistant Secretary of State Kurt Campbell, who is due to arrive in Tokyo on Monday and head to Seoul the following day, was expected to discuss the conditions the North has attached to returning to the stalled nuclear talks.
The North has demanded an end to U.N. sanctions imposed after its nuclear test in May 2009 that have jolted its broken economy and a peace treaty with the United States to replace the cease fire that ended the 1950-53 Korean War, which could then help open up international finance for Pyongyang.
The top U.N. political official will travel to North Korea for wide-ranging talks, the United Nations announced on Sunday.
It said Lynn Pascoe, under-secretary-general for political affairs, would visit North Korea February 9-12 to discuss "all issues of mutual interest and concern in a comprehensive manner."

Posted by CBN Extra Staff on 04 Feb 2010 [07:10] | Comments 0 |