Meeting with South Korea Prime Minister Lho Regarding Trade, October 25, 1985
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- Title (Dublin Core)
- Meeting with South Korea Prime Minister Lho Regarding Trade, October 25, 1985
- Date (Dublin Core)
- 1985-10-25
- Date Created (Dublin Core)
- 1985-10-25
- Congress (Dublin Core)
- 99th (1985-1987)
- Topics (Dublin Core)
- See all items with this valueUnited States--Foreign relations--Korea (South)
- Policy Area (Curation)
- Foreign Trade and International Finance
- Creator (Dublin Core)
- Dole, Robert J., 1923-2021
- Record Type (Dublin Core)
- memorandums
- Names (Dublin Core)
- See all items with this valueLho, Shin-yong
- Rights (Dublin Core)
- http://rightsstatements.org/vocab/CNE/1.0/
- Language (Dublin Core)
- eng
- Collection Finding Aid (Dublin Core)
- https://dolearchivecollections.ku.edu/index.php?p=collections/findingaid&id=26&q=
- Physical Location (Dublin Core)
- Collection 007. Box 389, Folder 10
- Institution (Dublin Core)
- Robert J. Dole Institute of Politics, University of Kansas, Lawrence, KS
- Archival Collection (Dublin Core)
- Robert J. Dole Republican Leadership Collection, 1985-1996
- Full Text (Extract Text)
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BOB DOLE
KANSAS
United States Senate
OFFICE OF MAJORITY LEADER
S-230 THE CAPITOL
ROD :
You may want to sit in on this one.
See my "instant analysis" of the Korean trade liberalization package in the "Issues/Talking Points" section.
[signature]
AL
[page 2]
Shinyong LHO (low) , Prime Minister of South Korea
Addressed as: MR. PRIME MINISTER
Prime Minister for six months. Influential adviser to President Chun but not independent political power.
Made some headlines at UN when he had brief meeting with North Korean Vice President, highest level North- South contact in more than a decade.
You met him in Seoul August 17. Discussion centered on trade.
ISSUES
* Trade. South Korea about to announce new trade liberalization package. Three year, staged increase in number of commodities allowed to be imported. Major disappointments: doesn't lower any tariffs; doesn't deal with intellectual property issues; ignores some areas of major concern (e.g., insurance) ; delays permission to import many key items (e.g., computers until 1987 and canned fruits until 1988) .
* North-South contacts. Lho's meeting with North Korean Vice President in New York has sparked rumors of [word scribbled out] Chun-Kim Il Sung summit.
[page 3]
MEMORANDUM
October 25, 1985
To: SENATOR DOLE
From: AL LEHN
DAVE CORDOVA
Subject: YOUR MEETING WITH KOREAN PRIME MINISTER LHO, MONDAY, OCTOBER 28, 10:30 AM
Shinyong LHO (low) has been Prime Minister for six months. While influential on policy matters with President Chun, he is not a political heavyweight in his own right. He is a career diplomat who rose through the bureaucratic ranks to be Foreign Minister (1980-82) and Director of the Agency for National Security Planning (1982-85), roughly equivalent to Bud McFarlane's job in our system, prior to becoming Prime Minister.
Lho is in the US to attend the UN General Assembly. While in New York, he met briefly at a social event with the North Korean Vice President, the highest level encounter between officials of the two Koreas in more than a decade.
You will recall meeting with Lho in Seoul. On that occasion, trade was virtually the sole topic.
Attached are:
-- A delegation list (Lho will be accompanied by six aides) .
-- A summary of your August 17 meeting with Lho in Seoul.
-- Issues/talking points.
cc . ROD
JOYCE
[page 4]
DELEGATION LIST OF SOUTH KOREAN PRIME MINISTER LHO
Shinyong LHO, Prime Minister
Addressed as: MR. PRIME MINISTER
Sang Ok LEE, Vice Minister of Foreign Affairs
Addressed as: MR. LEE
Soonbong HA, Secretary General to the Prime Minister
Addressed as: MR. HA
Pak Chae HAN, Deputy Chief of Mission, South Korean Embassy
Addressed as: MR. HAN
Yang LEE, Director, North American Division, Ministry of Foreign Affairs
Addressed as: MR. LEE
Kimoon BAN, Protocol Secretary to the Prime Minister
Addressed as: MR. BAN
Jai Ryong JANG, Counsellor, South Korean Embassy
Addressed as: MR. JANG
[page 5]
SUMMARY OF MEETING
SOUTH KOREAN PRIME MINISTER LHO
AUGUST 17, 1985
PRIME MINISTER LHO. THE DELEGATION STRESSED TO LHO THAT, UNLESS THE ROK TAKES CONCRETE AND EFFECTIVE STEPS TO REDUCE OUR DEFICITS WITHIN TWO OR THREE MONTHS, AT MOST, CONGRESS IS LIKELY TO ACT. THE DELEGATION CITED COMPUTERS AND TOBACCO PRODUCTS AS EXAMPLES OF AMERICAN PRODUCTS WHICH COULD COMPETE EFFECTIVELY IN A FREE MARKET IN KOREA. WE ACKNOWLEDGED LHO'S POINTS THAT KOREA IS DIFFERENT THAN JAPAN AND HAS ITS OWN ECONOMIC PROBLEMS, SUCH AS A LABOR FORCE WORKING ON THE MARGINS OF POVERTY, WITH POTENTIAL FOR DOMESTIC UNREST IF UNEMPLOYMENT SHOULD INCREASE. BUT WE ALSO OUTLINED OUR OWN ECONOMIC PROBLEMS -- PER CAPITA DEBT MORE THAN EIGHT TIMES AS LARGE AS SOUTH KOREA'S, HIGH BUDGET DEFICITS AND MANY THOUSANDS OF AMERICANS OUT OF WORK BECAUSE OF IMPORTS.
[page 6]
ISSUES/TALKING POINTS
TRADE. On October 12, the South Korean Ambassador wrote to advise you of a "new and comprehensive package of market-opening measures for both commodities and foreign investment" that his Government planned to announce "at the latest by October 19." As of today (October 25) no announcement has been made. Presumably it will be made soon .
Commodities. About 600 specific items will be approved for import over the period 1986-88. Among the most significant:
-- 1986: alfalfa, some auto parts, some service vehicles (buses, fire engines), some machine tools.
-- 1987: personal computers, some construction equipment, electrical generators, small cars, some chemical products.
-- 1988: all cars, all computers, canned fruits, additional chemical products.
Major disappointments in the package:
-- Does nothing about tariffs.
-- Does nothing about intellectual property.
-- Ignores some major areas of US concern, e.g., insurance.
-- Delays many of the most important products until the later years (e.g., personal computers in 1987 and canned fruits in 1988).
Investment. Opens 102 more industries to foreign investment immediately (making 762 out of a total of 999 industries open) . Also eliminates some "red tape" from investment procedures.
Suggested talking points:
-- APPRECIATE ADVANCE NOTICE OF TRADE/INVESTMENT LIBERALIZATION PACKAGE.
-- WHEN WILL TRADE MEASURES BE ANNOUNCED?
[page 7]
-2-
-- PACKAGE IS STEP FORWARD. WELCOME IT.
-- BUT DISAPPOINTED THAT DOES NOT INCLUDE:
-- NEEDED TARIFF CUTS.
-- ANYTHING ON INTELLECTUAL PROPERTY PROBLEMS.
-- SOME IMPORTANT SECTORS LIKE INSURANCE.
-- EARLIER ACTION ON IMPORTANT COMMODITIES LIKE COMPUTERS AND CANNED FRUIT.
NORTH-SOUTH CONTACTS. Lho's meeting with the North Korean Vice President in New York has spurred rumors about a possible "summit" between South Korean President Chun and North Korean leader Kim Il Sung. Meanwhile, other contacts continue: family reunification, economic issues and possible North Korean participation in the 1988 Olympics. Suggested talking points:
-- NOTED YOUR NEW YORK MEETING WITH NORTH KOREAN VICE PRESIDENT.
-- ANY PLANS FOR FOLLOW-UP WITH OTHER HIGH LEVEL CONTACTS?
-- ANYTHING HAPPENING ON THE QUESTION OF NORTH KOREAN PARTICIPATION IN THE 1988 OLYMPICS?
[page 8]
Shinyong LHO (low) , Prime Minister of South Korea
Addressed as: MR. PRIME MINISTER
Prime Minister for six months. Influential adviser to President Chun but not independent political power.
Made some headlines at UN when he had brief meeting with North Korean Vice President, highest level North-South contact in more than a decade.
You met him in Seoul August 17. Discussion centered on trade.
ISSUES
* Trade. South Korea about to announce new trade liberalization package. Three year, staged increase in number of commodities allowed to be imported. Major disappointments: doesn't lower any tariffs; doesn't deal with intellectual property issues; ignores some areas of major concern (e.g., insurance) ; delays permission to import many key items (e.g., computers until 1987 and canned fruits until 1988) .
* North-South contacts. Lho's meeting with North Korean Vice President in New York has sparked rumors of [word crossed out] Chun-Kim Il Sung summit.
[page 9]
MEMORANDUM
October 25, 1985
To: SENATOR DOLE
From: AL LEHN
DAVE CORDOVA
Subject: YOUR MEETING WITH KOREAN PRIME MINISTER LHO, MONDAY, OCTOBER 28, 10:30 AM
Shinyong LHO (low) has been Prime Minister for six months. While influential on policy matters with President Chun, he is not a political heavyweight in his own right. He is a career diplomat who rose through the bureaucratic ranks to be Foreign Minister (1980-82) and Director of the Agency for National Security Planning (1982-85), roughly equivalent to Bud McFarlane's job in our system, prior to becoming Prime Minister.
Lho is in the US to attend the UN General Assembly. While in New York, he met briefly at a social event with the North Korean Vice President, the highest level encounter between officials of the two Koreas in more than a decade.
You will recall meeting with Lho in Seoul. On that occasion, trade was virtually the sole topic.
Attached are:
-- A delegation list (Lho will be accompanied by six aides).
-- A summary of your August 17 meeting with Lho in Seoul.
-- Issues/talking points.
cc . ROD
JOYCE
[page 10]
DELEGATION LIST OF SOUTH KOREAN PRIME MINISTER LHO
Shinyong LHO, Prime Minister
Addressed as: MR. PRIME MINISTER
Sang Ok LEE, Vice Minister of Foreign Affairs
Addressed as: MR. LEE
Soonbong HA, Secretary General to the Prime Minister
Addressed as: MR. HA
Pak Chae HAN, Deputy Chief of Mission, South Korean Embassy
Addressed as: MR. HAN
Yang LEE, Director, North American Division, Ministry of Foreign Affairs
Addressed as: MR. LEE
Kimoon BAN, Protocol Secretary to the Prime Minister
Addressed as: MR. BAN
Jai Ryong JANG, Counsellor, South Korean Embassy
Addressed as: MR. JANG
[page 11]
SUMMARY OF MEETING
SOUTH KOREAN PRIME MINISTER LHO
AUGUST 17, 1985
PRIME MINISTER LHO. THE DELEGATION STRESSED TO LHO THAT, UNLESS THE ROK TAKES CONCRETE AND EFFECTIVE STEPS TO REDUCE OUR DEFICITS WITHIN TWO OR THREE MONTHS, AT MOST, CONGRESS IS LIKELY TO ACT. THE DELEGATION CITED COMPUTERS AND TOBACCO PRODUCTS AS EXAMPLES OF AMERICAN PRODUCTS WHICH COULD COMPETE EFFECTIVELY IN A FREE MARKET IN KOREA. WE ACKNOWLEDGED LHO'S POINTS THAT KOREA IS DIFFERENT THAN JAPAN AND HAS ITS OWN ECONOMIC PROBLEMS, SUCH AS A LABOR FORCE WORKING ON THE MARGINS OF POVERTY, WITH POTENTIAL FOR DOMESTIC UNREST IF UNEMPLOYMENT SHOULD INCREASE. BUT WE ALSO OUTLINED OUR OWN ECONOMIC PROBLEMS -- PER CAPITA DEBT MORE THAN EIGHT TIMES AS LARGE AS SOUTH KOREA'S, HIGH BUDGET DEFICITS AND MANY THOUSANDS OF AMERICANS OUT OF WORK BECAUSE OF IMPORTS.
[page 12]
ISSUES/TALKING POINTS
TRADE. On October 12, the South Korean Ambassador wrote to advise you of a "new and comprehensive package of market-opening measures for both commodities and foreign investment" that his Government planned to announce "at the latest by October 19." As of today (October 25) no announcement has been made. Presumably it will be made soon .
Commodities. About 600 specific items will be approved for import over the period 1986-88. Among the most significant:
-- 1986: alfalfa, some auto parts, some service vehicles (buses, fire engines), some machine tools.
-- 1987: personal computers, some construction equipment, electrical generators, small cars, some chemical products.
-- 1988: all cars, all computers, canned fruits, additional chemical products.
Major disappointments in the package:
-- Does nothing about tariffs.
-- Does nothing about intellectual property.
-- Ignores some major areas of US concern, e.g., insurance.
-- Delays many of the most important products until the later years (e.g., personal computers in 1987 and canned fruits in 1988) .
Investment. Opens 102 more industries to foreign investment immediately (making 762 out of a total of 999 industries open) . Also eliminates some "red tape" from investment procedures.
Suggested talking points:
-- APPRECIATE ADVANCE NOTICE OF TRADE/ INVESTMENT LIBERALIZATION PACKAGE.
-- WHEN WILL TRADE MEASURES BE ANNOUNCED?
[page 13]
-2-
-- PACKAGE IS STEP FORWARD. WELCOME IT.
-- BUT DISAPPOINTED THAT DOES NOT INCLUDE:
-- NEEDED TARIFF CUTS.
-- ANYTHING ON INTELLECTUAL PROPERTY PROBLEMS.
-- SOME IMPORTANT SECTORS LIKE INSURANCE.
-- EARLIER ACTION ON IMPORTANT COMMODITIES LIKE COMPUTERS AND CANNED FRUIT.
NORTH-SOUTH CONTACTS. Lho's meeting with the North Korean Vice President in New York has spurred rumors about a possible "summit" between South Korean President Chun and North Korean leader Kim Il Sung. Meanwhile, other contacts continue: family reunification, economic issues and possible North Korean participation in the 1988 Olympics. Suggested talking points:
-- NOTED YOUR NEW YORK MEETING WITH NORTH KOREAN VICE PRESIDENT.
-- ANY PLANS FOR FOLLOW-UP WITH OTHER HIGH LEVEL CONTACTS?
-- ANYTHING HAPPENING ON THE QUESTION OF NORTH KOREAN PARTICIPATION IN THE 1988 OLYMPICS?
[page 14]
Manufactured
automatic Approval Requests
automobile parts some
cosmetics
nylon carpets - 1986
loudspeakers 1986
electric hand tools
razors & blades 1987
machine tools 1986 , 1988
Construction equipment some 1987
computers (Pcs) 1987
Prime Minister :
meeting >
Trade > from our
Kansas , wheat; corn airplanes
Liberalization >
large trade partner
textile bill =>
Sensitive period of time
President Chun wish
wish- Strong prosperous U. S. > important to ROK equity
[page 15]
protectionism - no serve anyone's interest ->
lost 75 years ->
1982 - first time U.S. had trade deficit & ROK
Current account is balanced interest payment
pressure to open -mike
1988 , 3 years by
[illegible] Opening > = to other Westernized Countries
footwear; textiles, albums
Can solve by mutual negotiation
trade should not be considered as an isolated item
> 6% of GNP on defense
$ 4-5 billion of foreign debt
push too hard - SK will stumble
no in U.S. intern
more student up rising ; labor Unrest
anti- U.S. Pressure
[page 16]
Japan is the problem
why ROK Gov't can't get
sympathy & understanding
pressure from 1986 elections
Control of Senate & at stake
Admin > more aggressive now
Congress going it's own way now
couple of days will announce trade liberalism
tariff question
intellectual prop
insurance
gradually take barriers down
ROK no disrupting the U.S.
mkf
do not want to disrupt
$ strong > some problem caused
by our actions
Pressure on trade front
People of Korea > did not do anything wrong
same degree of push ROK total GNP> $80 billion -
BOB DOLE
KANSAS
United States Senate
OFFICE OF MAJORITY LEADER
S-230 THE CAPITOL
ROD :
You may want to sit in on this one.
See my "instant analysis" of the Korean trade liberalization package in the "Issues/Talking Points" section.
[signature]
AL
[page 2]
Shinyong LHO (low) , Prime Minister of South Korea
Addressed as: MR. PRIME MINISTER
Prime Minister for six months. Influential adviser to President Chun but not independent political power.
Made some headlines at UN when he had brief meeting with North Korean Vice President, highest level North- South contact in more than a decade.
You met him in Seoul August 17. Discussion centered on trade.
ISSUES
* Trade. South Korea about to announce new trade liberalization package. Three year, staged increase in number of commodities allowed to be imported. Major disappointments: doesn't lower any tariffs; doesn't deal with intellectual property issues; ignores some areas of major concern (e.g., insurance) ; delays permission to import many key items (e.g., computers until 1987 and canned fruits until 1988) .
* North-South contacts. Lho's meeting with North Korean Vice President in New York has sparked rumors of [word scribbled out] Chun-Kim Il Sung summit.
[page 3]
MEMORANDUM
October 25, 1985
To: SENATOR DOLE
From: AL LEHN
DAVE CORDOVA
Subject: YOUR MEETING WITH KOREAN PRIME MINISTER LHO, MONDAY, OCTOBER 28, 10:30 AM
Shinyong LHO (low) has been Prime Minister for six months. While influential on policy matters with President Chun, he is not a political heavyweight in his own right. He is a career diplomat who rose through the bureaucratic ranks to be Foreign Minister (1980-82) and Director of the Agency for National Security Planning (1982-85), roughly equivalent to Bud McFarlane's job in our system, prior to becoming Prime Minister.
Lho is in the US to attend the UN General Assembly. While in New York, he met briefly at a social event with the North Korean Vice President, the highest level encounter between officials of the two Koreas in more than a decade.
You will recall meeting with Lho in Seoul. On that occasion, trade was virtually the sole topic.
Attached are:
-- A delegation list (Lho will be accompanied by six aides) .
-- A summary of your August 17 meeting with Lho in Seoul.
-- Issues/talking points.
cc . ROD
JOYCE
[page 4]
DELEGATION LIST OF SOUTH KOREAN PRIME MINISTER LHO
Shinyong LHO, Prime Minister
Addressed as: MR. PRIME MINISTER
Sang Ok LEE, Vice Minister of Foreign Affairs
Addressed as: MR. LEE
Soonbong HA, Secretary General to the Prime Minister
Addressed as: MR. HA
Pak Chae HAN, Deputy Chief of Mission, South Korean Embassy
Addressed as: MR. HAN
Yang LEE, Director, North American Division, Ministry of Foreign Affairs
Addressed as: MR. LEE
Kimoon BAN, Protocol Secretary to the Prime Minister
Addressed as: MR. BAN
Jai Ryong JANG, Counsellor, South Korean Embassy
Addressed as: MR. JANG
[page 5]
SUMMARY OF MEETING
SOUTH KOREAN PRIME MINISTER LHO
AUGUST 17, 1985
PRIME MINISTER LHO. THE DELEGATION STRESSED TO LHO THAT, UNLESS THE ROK TAKES CONCRETE AND EFFECTIVE STEPS TO REDUCE OUR DEFICITS WITHIN TWO OR THREE MONTHS, AT MOST, CONGRESS IS LIKELY TO ACT. THE DELEGATION CITED COMPUTERS AND TOBACCO PRODUCTS AS EXAMPLES OF AMERICAN PRODUCTS WHICH COULD COMPETE EFFECTIVELY IN A FREE MARKET IN KOREA. WE ACKNOWLEDGED LHO'S POINTS THAT KOREA IS DIFFERENT THAN JAPAN AND HAS ITS OWN ECONOMIC PROBLEMS, SUCH AS A LABOR FORCE WORKING ON THE MARGINS OF POVERTY, WITH POTENTIAL FOR DOMESTIC UNREST IF UNEMPLOYMENT SHOULD INCREASE. BUT WE ALSO OUTLINED OUR OWN ECONOMIC PROBLEMS -- PER CAPITA DEBT MORE THAN EIGHT TIMES AS LARGE AS SOUTH KOREA'S, HIGH BUDGET DEFICITS AND MANY THOUSANDS OF AMERICANS OUT OF WORK BECAUSE OF IMPORTS.
[page 6]
ISSUES/TALKING POINTS
TRADE. On October 12, the South Korean Ambassador wrote to advise you of a "new and comprehensive package of market-opening measures for both commodities and foreign investment" that his Government planned to announce "at the latest by October 19." As of today (October 25) no announcement has been made. Presumably it will be made soon .
Commodities. About 600 specific items will be approved for import over the period 1986-88. Among the most significant:
-- 1986: alfalfa, some auto parts, some service vehicles (buses, fire engines), some machine tools.
-- 1987: personal computers, some construction equipment, electrical generators, small cars, some chemical products.
-- 1988: all cars, all computers, canned fruits, additional chemical products.
Major disappointments in the package:
-- Does nothing about tariffs.
-- Does nothing about intellectual property.
-- Ignores some major areas of US concern, e.g., insurance.
-- Delays many of the most important products until the later years (e.g., personal computers in 1987 and canned fruits in 1988).
Investment. Opens 102 more industries to foreign investment immediately (making 762 out of a total of 999 industries open) . Also eliminates some "red tape" from investment procedures.
Suggested talking points:
-- APPRECIATE ADVANCE NOTICE OF TRADE/INVESTMENT LIBERALIZATION PACKAGE.
-- WHEN WILL TRADE MEASURES BE ANNOUNCED?
[page 7]
-2-
-- PACKAGE IS STEP FORWARD. WELCOME IT.
-- BUT DISAPPOINTED THAT DOES NOT INCLUDE:
-- NEEDED TARIFF CUTS.
-- ANYTHING ON INTELLECTUAL PROPERTY PROBLEMS.
-- SOME IMPORTANT SECTORS LIKE INSURANCE.
-- EARLIER ACTION ON IMPORTANT COMMODITIES LIKE COMPUTERS AND CANNED FRUIT.
NORTH-SOUTH CONTACTS. Lho's meeting with the North Korean Vice President in New York has spurred rumors about a possible "summit" between South Korean President Chun and North Korean leader Kim Il Sung. Meanwhile, other contacts continue: family reunification, economic issues and possible North Korean participation in the 1988 Olympics. Suggested talking points:
-- NOTED YOUR NEW YORK MEETING WITH NORTH KOREAN VICE PRESIDENT.
-- ANY PLANS FOR FOLLOW-UP WITH OTHER HIGH LEVEL CONTACTS?
-- ANYTHING HAPPENING ON THE QUESTION OF NORTH KOREAN PARTICIPATION IN THE 1988 OLYMPICS?
[page 8]
Shinyong LHO (low) , Prime Minister of South Korea
Addressed as: MR. PRIME MINISTER
Prime Minister for six months. Influential adviser to President Chun but not independent political power.
Made some headlines at UN when he had brief meeting with North Korean Vice President, highest level North-South contact in more than a decade.
You met him in Seoul August 17. Discussion centered on trade.
ISSUES
* Trade. South Korea about to announce new trade liberalization package. Three year, staged increase in number of commodities allowed to be imported. Major disappointments: doesn't lower any tariffs; doesn't deal with intellectual property issues; ignores some areas of major concern (e.g., insurance) ; delays permission to import many key items (e.g., computers until 1987 and canned fruits until 1988) .
* North-South contacts. Lho's meeting with North Korean Vice President in New York has sparked rumors of [word crossed out] Chun-Kim Il Sung summit.
[page 9]
MEMORANDUM
October 25, 1985
To: SENATOR DOLE
From: AL LEHN
DAVE CORDOVA
Subject: YOUR MEETING WITH KOREAN PRIME MINISTER LHO, MONDAY, OCTOBER 28, 10:30 AM
Shinyong LHO (low) has been Prime Minister for six months. While influential on policy matters with President Chun, he is not a political heavyweight in his own right. He is a career diplomat who rose through the bureaucratic ranks to be Foreign Minister (1980-82) and Director of the Agency for National Security Planning (1982-85), roughly equivalent to Bud McFarlane's job in our system, prior to becoming Prime Minister.
Lho is in the US to attend the UN General Assembly. While in New York, he met briefly at a social event with the North Korean Vice President, the highest level encounter between officials of the two Koreas in more than a decade.
You will recall meeting with Lho in Seoul. On that occasion, trade was virtually the sole topic.
Attached are:
-- A delegation list (Lho will be accompanied by six aides).
-- A summary of your August 17 meeting with Lho in Seoul.
-- Issues/talking points.
cc . ROD
JOYCE
[page 10]
DELEGATION LIST OF SOUTH KOREAN PRIME MINISTER LHO
Shinyong LHO, Prime Minister
Addressed as: MR. PRIME MINISTER
Sang Ok LEE, Vice Minister of Foreign Affairs
Addressed as: MR. LEE
Soonbong HA, Secretary General to the Prime Minister
Addressed as: MR. HA
Pak Chae HAN, Deputy Chief of Mission, South Korean Embassy
Addressed as: MR. HAN
Yang LEE, Director, North American Division, Ministry of Foreign Affairs
Addressed as: MR. LEE
Kimoon BAN, Protocol Secretary to the Prime Minister
Addressed as: MR. BAN
Jai Ryong JANG, Counsellor, South Korean Embassy
Addressed as: MR. JANG
[page 11]
SUMMARY OF MEETING
SOUTH KOREAN PRIME MINISTER LHO
AUGUST 17, 1985
PRIME MINISTER LHO. THE DELEGATION STRESSED TO LHO THAT, UNLESS THE ROK TAKES CONCRETE AND EFFECTIVE STEPS TO REDUCE OUR DEFICITS WITHIN TWO OR THREE MONTHS, AT MOST, CONGRESS IS LIKELY TO ACT. THE DELEGATION CITED COMPUTERS AND TOBACCO PRODUCTS AS EXAMPLES OF AMERICAN PRODUCTS WHICH COULD COMPETE EFFECTIVELY IN A FREE MARKET IN KOREA. WE ACKNOWLEDGED LHO'S POINTS THAT KOREA IS DIFFERENT THAN JAPAN AND HAS ITS OWN ECONOMIC PROBLEMS, SUCH AS A LABOR FORCE WORKING ON THE MARGINS OF POVERTY, WITH POTENTIAL FOR DOMESTIC UNREST IF UNEMPLOYMENT SHOULD INCREASE. BUT WE ALSO OUTLINED OUR OWN ECONOMIC PROBLEMS -- PER CAPITA DEBT MORE THAN EIGHT TIMES AS LARGE AS SOUTH KOREA'S, HIGH BUDGET DEFICITS AND MANY THOUSANDS OF AMERICANS OUT OF WORK BECAUSE OF IMPORTS.
[page 12]
ISSUES/TALKING POINTS
TRADE. On October 12, the South Korean Ambassador wrote to advise you of a "new and comprehensive package of market-opening measures for both commodities and foreign investment" that his Government planned to announce "at the latest by October 19." As of today (October 25) no announcement has been made. Presumably it will be made soon .
Commodities. About 600 specific items will be approved for import over the period 1986-88. Among the most significant:
-- 1986: alfalfa, some auto parts, some service vehicles (buses, fire engines), some machine tools.
-- 1987: personal computers, some construction equipment, electrical generators, small cars, some chemical products.
-- 1988: all cars, all computers, canned fruits, additional chemical products.
Major disappointments in the package:
-- Does nothing about tariffs.
-- Does nothing about intellectual property.
-- Ignores some major areas of US concern, e.g., insurance.
-- Delays many of the most important products until the later years (e.g., personal computers in 1987 and canned fruits in 1988) .
Investment. Opens 102 more industries to foreign investment immediately (making 762 out of a total of 999 industries open) . Also eliminates some "red tape" from investment procedures.
Suggested talking points:
-- APPRECIATE ADVANCE NOTICE OF TRADE/ INVESTMENT LIBERALIZATION PACKAGE.
-- WHEN WILL TRADE MEASURES BE ANNOUNCED?
[page 13]
-2-
-- PACKAGE IS STEP FORWARD. WELCOME IT.
-- BUT DISAPPOINTED THAT DOES NOT INCLUDE:
-- NEEDED TARIFF CUTS.
-- ANYTHING ON INTELLECTUAL PROPERTY PROBLEMS.
-- SOME IMPORTANT SECTORS LIKE INSURANCE.
-- EARLIER ACTION ON IMPORTANT COMMODITIES LIKE COMPUTERS AND CANNED FRUIT.
NORTH-SOUTH CONTACTS. Lho's meeting with the North Korean Vice President in New York has spurred rumors about a possible "summit" between South Korean President Chun and North Korean leader Kim Il Sung. Meanwhile, other contacts continue: family reunification, economic issues and possible North Korean participation in the 1988 Olympics. Suggested talking points:
-- NOTED YOUR NEW YORK MEETING WITH NORTH KOREAN VICE PRESIDENT.
-- ANY PLANS FOR FOLLOW-UP WITH OTHER HIGH LEVEL CONTACTS?
-- ANYTHING HAPPENING ON THE QUESTION OF NORTH KOREAN PARTICIPATION IN THE 1988 OLYMPICS?
[page 14]
Manufactured
automatic Approval Requests
automobile parts some
cosmetics
nylon carpets - 1986
loudspeakers 1986
electric hand tools
razors & blades 1987
machine tools 1986 , 1988
Construction equipment some 1987
computers (Pcs) 1987
Prime Minister :
meeting >
Trade > from our
Kansas , wheat; corn airplanes
Liberalization >
large trade partner
textile bill =>
Sensitive period of time
President Chun wish
wish- Strong prosperous U. S. > important to ROK equity
[page 15]
protectionism - no serve anyone's interest ->
lost 75 years ->
1982 - first time U.S. had trade deficit & ROK
Current account is balanced interest payment
pressure to open -mike
1988 , 3 years by
[illegible] Opening > = to other Westernized Countries
footwear; textiles, albums
Can solve by mutual negotiation
trade should not be considered as an isolated item
> 6% of GNP on defense
$ 4-5 billion of foreign debt
push too hard - SK will stumble
no in U.S. intern
more student up rising ; labor Unrest
anti- U.S. Pressure
[page 16]
Japan is the problem
why ROK Gov't can't get
sympathy & understanding
pressure from 1986 elections
Control of Senate & at stake
Admin > more aggressive now
Congress going it's own way now
couple of days will announce trade liberalism
tariff question
intellectual prop
insurance
gradually take barriers down
ROK no disrupting the U.S.
mkf
do not want to disrupt
$ strong > some problem caused
by our actions
Pressure on trade front
People of Korea > did not do anything wrong
same degree of push ROK total GNP> $80 billion -
BOB DOLE
KANSAS
United States Senate
OFFICE OF MAJORITY LEADER
S-230 THE CAPITOL
ROD :
You may want to sit in on this one.
See my "instant analysis" of the Korean trade liberalization package in the "Issues/Talking Points" section.
[signature]
AL
[page 2]
Shinyong LHO (low) , Prime Minister of South Korea
Addressed as: MR. PRIME MINISTER
Prime Minister for six months. Influential adviser to President Chun but not independent political power.
Made some headlines at UN when he had brief meeting with North Korean Vice President, highest level North- South contact in more than a decade.
You met him in Seoul August 17. Discussion centered on trade.
ISSUES
* Trade. South Korea about to announce new trade liberalization package. Three year, staged increase in number of commodities allowed to be imported. Major disappointments: doesn't lower any tariffs; doesn't deal with intellectual property issues; ignores some areas of major concern (e.g., insurance) ; delays permission to import many key items (e.g., computers until 1987 and canned fruits until 1988) .
* North-South contacts. Lho's meeting with North Korean Vice President in New York has sparked rumors of [word scribbled out] Chun-Kim Il Sung summit.
[page 3]
MEMORANDUM
October 25, 1985
To: SENATOR DOLE
From: AL LEHN
DAVE CORDOVA
Subject: YOUR MEETING WITH KOREAN PRIME MINISTER LHO, MONDAY, OCTOBER 28, 10:30 AM
Shinyong LHO (low) has been Prime Minister for six months. While influential on policy matters with President Chun, he is not a political heavyweight in his own right. He is a career diplomat who rose through the bureaucratic ranks to be Foreign Minister (1980-82) and Director of the Agency for National Security Planning (1982-85), roughly equivalent to Bud McFarlane's job in our system, prior to becoming Prime Minister.
Lho is in the US to attend the UN General Assembly. While in New York, he met briefly at a social event with the North Korean Vice President, the highest level encounter between officials of the two Koreas in more than a decade.
You will recall meeting with Lho in Seoul. On that occasion, trade was virtually the sole topic.
Attached are:
-- A delegation list (Lho will be accompanied by six aides) .
-- A summary of your August 17 meeting with Lho in Seoul.
-- Issues/talking points.
cc . ROD
JOYCE
[page 4]
DELEGATION LIST OF SOUTH KOREAN PRIME MINISTER LHO
Shinyong LHO, Prime Minister
Addressed as: MR. PRIME MINISTER
Sang Ok LEE, Vice Minister of Foreign Affairs
Addressed as: MR. LEE
Soonbong HA, Secretary General to the Prime Minister
Addressed as: MR. HA
Pak Chae HAN, Deputy Chief of Mission, South Korean Embassy
Addressed as: MR. HAN
Yang LEE, Director, North American Division, Ministry of Foreign Affairs
Addressed as: MR. LEE
Kimoon BAN, Protocol Secretary to the Prime Minister
Addressed as: MR. BAN
Jai Ryong JANG, Counsellor, South Korean Embassy
Addressed as: MR. JANG
[page 5]
SUMMARY OF MEETING
SOUTH KOREAN PRIME MINISTER LHO
AUGUST 17, 1985
PRIME MINISTER LHO. THE DELEGATION STRESSED TO LHO THAT, UNLESS THE ROK TAKES CONCRETE AND EFFECTIVE STEPS TO REDUCE OUR DEFICITS WITHIN TWO OR THREE MONTHS, AT MOST, CONGRESS IS LIKELY TO ACT. THE DELEGATION CITED COMPUTERS AND TOBACCO PRODUCTS AS EXAMPLES OF AMERICAN PRODUCTS WHICH COULD COMPETE EFFECTIVELY IN A FREE MARKET IN KOREA. WE ACKNOWLEDGED LHO'S POINTS THAT KOREA IS DIFFERENT THAN JAPAN AND HAS ITS OWN ECONOMIC PROBLEMS, SUCH AS A LABOR FORCE WORKING ON THE MARGINS OF POVERTY, WITH POTENTIAL FOR DOMESTIC UNREST IF UNEMPLOYMENT SHOULD INCREASE. BUT WE ALSO OUTLINED OUR OWN ECONOMIC PROBLEMS -- PER CAPITA DEBT MORE THAN EIGHT TIMES AS LARGE AS SOUTH KOREA'S, HIGH BUDGET DEFICITS AND MANY THOUSANDS OF AMERICANS OUT OF WORK BECAUSE OF IMPORTS.
[page 6]
ISSUES/TALKING POINTS
TRADE. On October 12, the South Korean Ambassador wrote to advise you of a "new and comprehensive package of market-opening measures for both commodities and foreign investment" that his Government planned to announce "at the latest by October 19." As of today (October 25) no announcement has been made. Presumably it will be made soon .
Commodities. About 600 specific items will be approved for import over the period 1986-88. Among the most significant:
-- 1986: alfalfa, some auto parts, some service vehicles (buses, fire engines), some machine tools.
-- 1987: personal computers, some construction equipment, electrical generators, small cars, some chemical products.
-- 1988: all cars, all computers, canned fruits, additional chemical products.
Major disappointments in the package:
-- Does nothing about tariffs.
-- Does nothing about intellectual property.
-- Ignores some major areas of US concern, e.g., insurance.
-- Delays many of the most important products until the later years (e.g., personal computers in 1987 and canned fruits in 1988).
Investment. Opens 102 more industries to foreign investment immediately (making 762 out of a total of 999 industries open) . Also eliminates some "red tape" from investment procedures.
Suggested talking points:
-- APPRECIATE ADVANCE NOTICE OF TRADE/INVESTMENT LIBERALIZATION PACKAGE.
-- WHEN WILL TRADE MEASURES BE ANNOUNCED?
[page 7]
-2-
-- PACKAGE IS STEP FORWARD. WELCOME IT.
-- BUT DISAPPOINTED THAT DOES NOT INCLUDE:
-- NEEDED TARIFF CUTS.
-- ANYTHING ON INTELLECTUAL PROPERTY PROBLEMS.
-- SOME IMPORTANT SECTORS LIKE INSURANCE.
-- EARLIER ACTION ON IMPORTANT COMMODITIES LIKE COMPUTERS AND CANNED FRUIT.
NORTH-SOUTH CONTACTS. Lho's meeting with the North Korean Vice President in New York has spurred rumors about a possible "summit" between South Korean President Chun and North Korean leader Kim Il Sung. Meanwhile, other contacts continue: family reunification, economic issues and possible North Korean participation in the 1988 Olympics. Suggested talking points:
-- NOTED YOUR NEW YORK MEETING WITH NORTH KOREAN VICE PRESIDENT.
-- ANY PLANS FOR FOLLOW-UP WITH OTHER HIGH LEVEL CONTACTS?
-- ANYTHING HAPPENING ON THE QUESTION OF NORTH KOREAN PARTICIPATION IN THE 1988 OLYMPICS?
[page 8]
Shinyong LHO (low) , Prime Minister of South Korea
Addressed as: MR. PRIME MINISTER
Prime Minister for six months. Influential adviser to President Chun but not independent political power.
Made some headlines at UN when he had brief meeting with North Korean Vice President, highest level North-South contact in more than a decade.
You met him in Seoul August 17. Discussion centered on trade.
ISSUES
* Trade. South Korea about to announce new trade liberalization package. Three year, staged increase in number of commodities allowed to be imported. Major disappointments: doesn't lower any tariffs; doesn't deal with intellectual property issues; ignores some areas of major concern (e.g., insurance) ; delays permission to import many key items (e.g., computers until 1987 and canned fruits until 1988) .
* North-South contacts. Lho's meeting with North Korean Vice President in New York has sparked rumors of [word crossed out] Chun-Kim Il Sung summit.
[page 9]
MEMORANDUM
October 25, 1985
To: SENATOR DOLE
From: AL LEHN
DAVE CORDOVA
Subject: YOUR MEETING WITH KOREAN PRIME MINISTER LHO, MONDAY, OCTOBER 28, 10:30 AM
Shinyong LHO (low) has been Prime Minister for six months. While influential on policy matters with President Chun, he is not a political heavyweight in his own right. He is a career diplomat who rose through the bureaucratic ranks to be Foreign Minister (1980-82) and Director of the Agency for National Security Planning (1982-85), roughly equivalent to Bud McFarlane's job in our system, prior to becoming Prime Minister.
Lho is in the US to attend the UN General Assembly. While in New York, he met briefly at a social event with the North Korean Vice President, the highest level encounter between officials of the two Koreas in more than a decade.
You will recall meeting with Lho in Seoul. On that occasion, trade was virtually the sole topic.
Attached are:
-- A delegation list (Lho will be accompanied by six aides).
-- A summary of your August 17 meeting with Lho in Seoul.
-- Issues/talking points.
cc . ROD
JOYCE
[page 10]
DELEGATION LIST OF SOUTH KOREAN PRIME MINISTER LHO
Shinyong LHO, Prime Minister
Addressed as: MR. PRIME MINISTER
Sang Ok LEE, Vice Minister of Foreign Affairs
Addressed as: MR. LEE
Soonbong HA, Secretary General to the Prime Minister
Addressed as: MR. HA
Pak Chae HAN, Deputy Chief of Mission, South Korean Embassy
Addressed as: MR. HAN
Yang LEE, Director, North American Division, Ministry of Foreign Affairs
Addressed as: MR. LEE
Kimoon BAN, Protocol Secretary to the Prime Minister
Addressed as: MR. BAN
Jai Ryong JANG, Counsellor, South Korean Embassy
Addressed as: MR. JANG
[page 11]
SUMMARY OF MEETING
SOUTH KOREAN PRIME MINISTER LHO
AUGUST 17, 1985
PRIME MINISTER LHO. THE DELEGATION STRESSED TO LHO THAT, UNLESS THE ROK TAKES CONCRETE AND EFFECTIVE STEPS TO REDUCE OUR DEFICITS WITHIN TWO OR THREE MONTHS, AT MOST, CONGRESS IS LIKELY TO ACT. THE DELEGATION CITED COMPUTERS AND TOBACCO PRODUCTS AS EXAMPLES OF AMERICAN PRODUCTS WHICH COULD COMPETE EFFECTIVELY IN A FREE MARKET IN KOREA. WE ACKNOWLEDGED LHO'S POINTS THAT KOREA IS DIFFERENT THAN JAPAN AND HAS ITS OWN ECONOMIC PROBLEMS, SUCH AS A LABOR FORCE WORKING ON THE MARGINS OF POVERTY, WITH POTENTIAL FOR DOMESTIC UNREST IF UNEMPLOYMENT SHOULD INCREASE. BUT WE ALSO OUTLINED OUR OWN ECONOMIC PROBLEMS -- PER CAPITA DEBT MORE THAN EIGHT TIMES AS LARGE AS SOUTH KOREA'S, HIGH BUDGET DEFICITS AND MANY THOUSANDS OF AMERICANS OUT OF WORK BECAUSE OF IMPORTS.
[page 12]
ISSUES/TALKING POINTS
TRADE. On October 12, the South Korean Ambassador wrote to advise you of a "new and comprehensive package of market-opening measures for both commodities and foreign investment" that his Government planned to announce "at the latest by October 19." As of today (October 25) no announcement has been made. Presumably it will be made soon .
Commodities. About 600 specific items will be approved for import over the period 1986-88. Among the most significant:
-- 1986: alfalfa, some auto parts, some service vehicles (buses, fire engines), some machine tools.
-- 1987: personal computers, some construction equipment, electrical generators, small cars, some chemical products.
-- 1988: all cars, all computers, canned fruits, additional chemical products.
Major disappointments in the package:
-- Does nothing about tariffs.
-- Does nothing about intellectual property.
-- Ignores some major areas of US concern, e.g., insurance.
-- Delays many of the most important products until the later years (e.g., personal computers in 1987 and canned fruits in 1988) .
Investment. Opens 102 more industries to foreign investment immediately (making 762 out of a total of 999 industries open) . Also eliminates some "red tape" from investment procedures.
Suggested talking points:
-- APPRECIATE ADVANCE NOTICE OF TRADE/ INVESTMENT LIBERALIZATION PACKAGE.
-- WHEN WILL TRADE MEASURES BE ANNOUNCED?
[page 13]
-2-
-- PACKAGE IS STEP FORWARD. WELCOME IT.
-- BUT DISAPPOINTED THAT DOES NOT INCLUDE:
-- NEEDED TARIFF CUTS.
-- ANYTHING ON INTELLECTUAL PROPERTY PROBLEMS.
-- SOME IMPORTANT SECTORS LIKE INSURANCE.
-- EARLIER ACTION ON IMPORTANT COMMODITIES LIKE COMPUTERS AND CANNED FRUIT.
NORTH-SOUTH CONTACTS. Lho's meeting with the North Korean Vice President in New York has spurred rumors about a possible "summit" between South Korean President Chun and North Korean leader Kim Il Sung. Meanwhile, other contacts continue: family reunification, economic issues and possible North Korean participation in the 1988 Olympics. Suggested talking points:
-- NOTED YOUR NEW YORK MEETING WITH NORTH KOREAN VICE PRESIDENT.
-- ANY PLANS FOR FOLLOW-UP WITH OTHER HIGH LEVEL CONTACTS?
-- ANYTHING HAPPENING ON THE QUESTION OF NORTH KOREAN PARTICIPATION IN THE 1988 OLYMPICS?
[page 14]
Manufactured
automatic Approval Requests
automobile parts some
cosmetics
nylon carpets - 1986
loudspeakers 1986
electric hand tools
razors & blades 1987
machine tools 1986 , 1988
Construction equipment some 1987
computers (Pcs) 1987
Prime Minister :
meeting >
Trade > from our
Kansas , wheat; corn airplanes
Liberalization >
large trade partner
textile bill =>
Sensitive period of time
President Chun wish
wish- Strong prosperous U. S. > important to ROK equity
[page 15]
protectionism - no serve anyone's interest ->
lost 75 years ->
1982 - first time U.S. had trade deficit & ROK
Current account is balanced interest payment
pressure to open -mike
1988 , 3 years by
[illegible] Opening > = to other Westernized Countries
footwear; textiles, albums
Can solve by mutual negotiation
trade should not be considered as an isolated item
> 6% of GNP on defense
$ 4-5 billion of foreign debt
push too hard - SK will stumble
no in U.S. intern
more student up rising ; labor Unrest
anti- U.S. Pressure
[page 16]
Japan is the problem
why ROK Gov't can't get
sympathy & understanding
pressure from 1986 elections
Control of Senate & at stake
Admin > more aggressive now
Congress going it's own way now
couple of days will announce trade liberalism
tariff question
intellectual prop
insurance
gradually take barriers down
ROK no disrupting the U.S.
mkf
do not want to disrupt
$ strong > some problem caused
by our actions
Pressure on trade front
People of Korea > did not do anything wrong
same degree of push ROK total GNP> $80 billion
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