The two Koreas agreed to conduct a test run of two inter-korean railroad lines by August at the latest, after the North cancelled the tests abruptly last month. The South will in turn assist the North in the areas of light industry and natural resources.
The two parties adopted the written agreement at the 12th round of meetings of the South-North Economic Cooperation Promotion Committee, held on Jeju Island June 3-6. The next meeting will be held in Pyongyang in September. Under the agreement, the South will provide the North with 80 million USD in raw materials for its light industries and the North will repay 3 percent of the money with its natural resources within this year and owe the rest over the next 15 years. Seoul and Pyongyang will also exchange economic delegations. Both sides said they would carry out the terms of the agreement as soon as conditions are met.
Regarding those conditions, Kim Chon-shik, the spokesman of the South’s delegation and director for South-North economic cooperation at the Ministry of Unification, said in a press conference after the meeting, "As we decided to provide raw materials for the North’s light industries from August, the issue of the cross-border test run should be settled before August. Unless the train test run is conducted, the agreement will not become effective." Asked whether Pyongyang may raise other demands, "We [are on record at] the meeting, and we made clear that the train test run is a prerequisite," Mr. Kim replied.
In the meantime, the two Koreas agreed to hold working-level meetings in Kaesong, North Korea, in July. At the meeting, the issue of a joint economic project in a third country will be discussed. The North had previously brought up the prospect of a joint Korean venture into the logging industry in Russia. On June 20-21, the two Koreas will hold the second round of working-level meetings on the further development of the Kaesong industrial complex. At that meeting, delegates will cover matters relating to workforce supply and facilities, in order to strengthen Kaesong’s international competitive power. On June 26-27, the two sides will have working-level contact to prevent flood damage along the Imjin River, which flows across the border, and in July, the two Koreas will discuss ways to prevent natural disasters in Kaesong.
South agrees to provide North $80 million in aid |
