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becoming a viable economy, a competent, self-reliant, and hopeful nation allied to us by friendship as well as common interest.

Let me now turn to a number of the Committee's detailed questions not answered in the foregoing.

Legal Status of ROK and U.S. Relations with North Korea. Both North and South Korea claim sovereignty over the entire peninsula, but each respects the Armistice Agreement dividing the country at the DMZ pending a political settlement. They have no relations of any kind.

The United States recognizes that North Korea exercises administrative control over territory north of the DMZ, but it does not recognize the government in Pyongyang or that North Korea is a separate state. Accordingly, we have no relations of any kind with North Korea, although under the terms of the Armistice Agreement, we meet with North Korean representatives at Panmunjom. The United States accepts the finding of the United Nations set forth in the General Assembly resolution of October 21, 1949 that the Republic of Korea is the only lawful government in Korea.

Vance Mission to Korea January 1968. The Newsweek article was only in part accurate. The Koreans asked for [deleted] F-4s and we agreed to provide one squadron in the $100 million package. Additionally, two F-5Bs were provided from our MAP sources. Three helicopters were included in the $100 million package and nine were furnished from other MAP sources, but there is no record that the Koreans specifically asked for them during the Vance Mission. The Koreans did not ask for assignment of Korean officers to positions in the United Nations Command. A bilateral U.S.-Korean Operational Planning Staff for which plans had been under preparation since 1965 was, however, after the Pueblo incident, formally established. Also, in response to a Korean proposal for the formation of a Joint Defense Council of Foreign Ministers and Defense Ministers to meet once a year, we agreed to an annual meeting of the two defense ministries. [Deleted.] The communique indicated that if aggressive North Korean actions continued the two countries would determine what action should be taken under the Mutual Defense Treaty. Mr. Vance also agreed to bring to the President's attention Korean requests for other items of military assistance.

In Response to a Direct Question from the Subcommittee on the Estimated Response from North Korea and Republic of Korea if U.S. should Reduce its Forces on the DMZ. [Deleted.]

Economic Strength of North and South Korea Compared. Owing to uneven distribution of natural resources, economic development under the Japanese found almost all heavy industry in the peninsula concentrated in the North while the South remained essentially agricultural. The North was thus better equipped than the Republic of Korea in such economic sectors as steel and electric power but apparently remains deficient in agricultural production. The South has, however, starting from nothing, greatly enlarged its electric power capabilities, built a petroleum refining industry, equaled the North in cement production, exceeded it in manufacture of chemical fertilizer, and is making substantial progress in agriculture.

The North Korean economy still shows a statistical superiority over that of the South in many areas. In terms of growth and potential, however, the Republic of Korea economy is far more impressive. While North Korea has had to extend its 1961-67 Seven Year Plan by three years, and has not yet met many of the original goals, the Republic of Korea has greatly exceeded its first Five Year Plan targets, and should again exceed goals in the Second Five Year Plan ending in 1971.

Information about conditions in the North and statistical data are both unconfirmed and incomplete. Reportedly, however, per capita GNP is about $235, compared with an estimated $212 in the South for 1969. In the North, however, the rate of growth has dropped in recent years to an estimated 4 percent compared with a steady rise in the South to an estimated 15 percent in 1969, probably the highest in the world. Moreover, the consumer in the South has much more disposable income and shares more in productivity increases than his northern counterpart.

The Republic continues to diversify and increase its foreign markets while North Korea's major trading partners are the U.S.S.R. and Communist China, which account for more than 75 percent of its total trade. The South out trades the North four to one-about $2 billion for the Republic of Korea in 1968 compared with an estimated $500 million for North Korea in the same year. Population is 32 million in the South and only 13 million in the North.

Any Provocations Before North Koreans Attacked Pueblo? We are unaware of any unusual activity prior to the attacks on the Pueblo and the EC-121 regarded by the North Koreans as provocative. Some observers have drawn attention to North Korean broadcasts referring to "armed spy boats" intermingled with innocent fishing boats and have concluded that these were warnings to the U.S. to desist from Pueblo-type activities. This charge, however, long preceded the Pueblo incident and has always been assumed to refer to the presence of ROK patrol boats which accompany ROK fishing fleets as they approach the Military Demarcation Line extended. The broadcasts just before the Pueblo did not differ from previous broadcasts on that subject, and there is nothing to indicate that they constituted "warnings" regarding the Pueblo.

Similarly, it is possible to find through the years numerous North Korean complaints of unspecified "air intrusions."

Armed Forces Korea Network Survey. A USIA survey was conducted in four major Korean cities in August 1968. Sixteen percent of the respondents reported that they had listened to AFKN during the week preceding the interview; 35 percent had listened in the preceding month. Of those listening to AFKN, 63 percent said they listened for news.

Radio of Free Asia. We do not know of any "Voice of Free Asia." Radio of Free Asia is an organization incorporated for non-profit purposes in the State of Maryland, which broadcasts from Korea to Communist China and North Korea and appears to obtain its funds entirely from public solicitation in the United States. It broadcasts a total of 5 hours and 15 minutes a day to North Korea over short and medium wave and to Communist China 30 minutes a day over medium wave. It uses facilities of the Korean Broadcasting System. Literature which accompanies solicitations in the U.S. describes Radio of Free Asia as a "project" of the Korean Cultural and Freedom Foundation, which is also an organization in the United States and has tax-exempt status as a non-profit organization.

The Department of State has received a number of requests since Radio of Free Asia was founded in 1966 for U.S. Government financial support or endorsement, and has regularly declined to give either.

Did Republic of Korea Promote $50 Million Extra MAP in FY 1970? [Deleted.]

The Korean Government regarded the special $50 million added to the Foreign Aid bill in the House as a very important indication of United States support for Korea's military effort in the face of a continuing severe threat from the North. The Korean Embassy advises that they did not make any effort to initiate a special allocation of funds in the Foreign Aid bill. However, when $50 million for Korea was proposed they supported it in conversations with the Administration and with members of the Congress. After the special $50 million allocation was rejected by the Senate they pointed out to a number of Senators that this action would be interpreted in Korea as a definite setback for Korea and as an indication of lack of United States support for a very real Korean requirement. [Deleted.]

APPENDIXES

1. UN Resolution Establishing UNCURK, October 7, 1950.

2. UN Security Council Resolution, June 27, 1950.

3. UN Security Council Resolution, July 7, 1950.

4. Armistice Agreement of July 27, 1953. (Preamble and art. I only)

5. Mutual Defense Treaty of 1954.

6. Joint Communique of 1965. 7. Joint Communique of 1966. 8. Joint Communique of 1968.

9. Joint Communique of 1969.

10. Vice President Humphrey's Statement of February 23, 1966 in Seoul. 11. Mutual Defense Assistance Agreement, January 26, 1950 (not included, information in committee files).

12. Establishment of United States Military Advisory Group to the Republic of Korea, January 26, 1950 (not included, information in committee files).

13. Amendment of October 21, 1960 to the United States Military Advisory Group to the Republic of Korea (not included, information in committee files).

14. Sixteen Nations Declaration on Korea, July 27, 1953.

15. General Assembly Resolution, October 21, 1949.

16. Korean-U.S Joint Communique (Vance Communique issued at Seoul, February 15, 1968).

APPENDIX No. 1

RESOLUTION OF THE GENERAL ASSEMBLY, OCTOBER 7, 1950, ESTABLISHING THE UNITED NATIONS COMMISSION FOR THE UNIFICATION AND REHABILITATION OF KOREA (UNCURK)

The General Assembly,

Having regard to its resolutions of November 14, 1947, of December 12, 1948, and of October 21, 1949,

Having received and considered the report of the United Nations Commission on Korea,

Mindful of the fact that the objectives set forth in the resolutions referred to above have not been fully accomplished and, in particular, that the unification of Korea has not yet been achieved, and that an attempt has been made by an armed attack from North Korea to extinguish by force the Government of the Republic of Korea,

Recalling the General Assembly declaration of December 12, 1948, that there has been established a lawful government (the Government of the Republic of Korea) having effective control and jurisdiction over that part of Korea where the United Nations Temporary Commission on Korea was able to observe and consult and in which the great majority of the people of Korea reside; that this Government is based on elections which were a valid expression of the free will of the electorate of that part of Korea and which were observed by the Temporary Commission; and that this is the only such Government in Korea,

Having in mind that United Nations armed forces are at present operating in Korea in accordance with the recommendations of the Security Council of June 27, 1950, subsequent to its resolution of June 25, 1950, that Members of the United Nations furnish such assistance to the Republic of Korea as may be necessary to repel the armed attack and to restore international peace and security in the area,

Recalling that the essential objective of the resolutions of the General Assembly referred to above was the establishment of a unified, independent, and democratic Government of Korea,

1. Recommends that

(a) All appropriate steps be taken to ensure conditions of stability throughout Korea;

(b) All constituent acts be taken, including the holding of elections, under the auspices of the United Nations, for the establishment of a unified, independent, and democratic Government in the sovereign State of Korea;

(c) All sections and representative bodies of the population of Korea, South and North, be invited to cooperate with the organs of the United Nations in the restoration of peace, in the holding of elections, and in the establishment of a unified Government;

(d) United Nations forces should not remain in any part of Korea otherwise than so far as necessary for achieving the objectives specified in subparagraphs (a) and (b) above;

(e) All necessary measures be taken to accomplish the economic rehabilitation of Korea;

2. Resolves that

(a) The Commission consisting of Australia, Chile, Netherlands, Pakistan, Philippines, Thailand, and Turkey, to be known as the United Nations Commission for the Unification and Rehabilitation of Korea, be established to (i) assume the functions hitherto exercised by the present United Nations Commission in Korea; (ii) represent the United Nations in bringing about the establishment of a unified, independent and democratic government of all Korea; (iii) exercise such responsibilities in connection with relief and rehabilitation in Korea as may be determined by the General Assembly after receiving the recommendations of the Economic and Social Council. The United Nations Commission for the Unification and Rehabilitation of Korea should proceed to Korea and begin to carry out its functions as soon as possible;

(b) Pending the arrival in Korea of the United Nations Commission for the Unification and Rehabilitation of Korea, the Governments of the States repre

sented on the Commission should form an interim committee composed of representatives meeting at the seat of the United Nations to consult with and advise the United Nations Unified Command in the light of the above recommendations; the interim committee should begin to function immediately upon the approval of the present resolution by the General Assembly;

(c) The Commission shall render a report to the next regular session of the General Assembly and to any prior special session which might be called to consider the subject matter of the present resolution, and shall render such interim reports as it may deem appropriate to the Secretary-General for transmission to Members;

The General Assembly furthermore,

Mindful of the fact that at the end of the present hostilities the task of rehabilitating the Korean economy will be of great magnitude;

3. Requests the Economic and Social Council, in consultation with the specialized agencies, to develop plans for relief and rehabilitation on the termination of hostilities and to report to the General Assembly within three weeks of the adoption of the present resolution by the General Assembly;

4. Also recommends the Economic and Social Council to expedite the study of long-term measures to promote the economic development and social progress of Korea, and meanwhile to draw the authorities which decide requests for technical assistance to the urgent and special necessity of affording such assistance to Korea;

5. Expresses its appreciation of the services rendered by the members of the United Nations Commission on Korea in the performance of their important and difficult task;

6. Requests the Secretary-General to provide the Commission with adequate staff facilities, including technical advisers as required; and authorizes the Secretary-General to pay the expenses and per diem of a representative and alternate from each of the States members of the Commission.

NOTE: (Taken from Senate Document No. 74 (83d Congress-2d Session) re The United States and the Korean Problem-Documents 1943-1953, pages 41-43).

APPENDIX No. 2

THE SECOND UNITED NATIONS SECURITY COUNCIL RESOLUTION JUNE 27, 1950

Resolution concerning the complaint of aggression upon the Republic of Korea, adopted at the four hundred and seventy-fourth meeting of the Security Council, on June 27, 1950:

The Security Council,

Having determined that the armed attack upon the Republic of Korea by forces from North Korea constitutes a breach of the peace,

Having called for an immediate cessation of hostilies, and

Having called upon the authorities of North Korea to withdraw forthwith their armed forces to the 38th parallel, and

Having noted from the report of the United Nations Commission for Korea that the authorities in North Korea have neither ceased hostilities nor withdrawn their armed forces to the 38th parallel and that urgent military measures are required to restore international peace and security, and Having noted the appeal from the Republic of Korea to the United Nations for immediate and effective steps to secure peace and security, Recommends that the Members of the United Nations furnish such assistance to the Republic of Korea as may be necessary to repel the armed attack and to restore international peace and security in the area.

NOTE: (Taken from Union Calendar No. 889-House Report No. 2495-81st Congress, 2d Session-Report of the Committee on Foreign Affairs Pursuant to H. Res. 206-Background Information on Korea-Page 48).

APPENDIX No. 3

THE THIRD UNITED NATIONS SECURITY COUNCIL RESOLUTION JULY 7, 1950

(a) Text of resolution (UN Document S/1588):

The Security Council, having determined that the armed attack upon the Republic of Korea by forces from North Korea constitutes a breach of the peace, having recommended that members of the United Nations furnish such assistance to the Republic of Korea as may be necessary to repel the armed attack and to restore international peace and security in the area.

(1) Welcomes the prompt and vigorous support which governments and peoples of the United Nations have given to its resolutions of 25 and 27 June 1950 to assist the Republic of Korea in defending itself against armed attack and thus to restore international peace and security in the area ;

(2) Notes that members of the United Nations have transmitted to the United Nations offers of assistance for the Republic of Korea;

(3) Recommends that all members providing military forces and other assistance pursuant to the aforesaid Security Council resolutions make such forces and other assistance available to a unified command under the United States; (4) Requests the United States to designate the commander of such forces; (5) Authorizes the unified command at its discretion to use the United Nations flag in the course of operations against North Korean forces concurrently with the flags of the various nations participating.

(6) Requests the United States to provide the Security Council with reports, as appropriate, on the course of action taken under the unified command. NOTE: (Taken from Union Calendar No. 889-House Report No. 2495-81st Congress, 2d Session-Report of the Committee on Foreign Affairs Pursuant to H. Res. 206) (Page 53).

APPENDIX No. 4

AGREEMENT BETWEEN THE COMMANDER-IN-CHIEF, UNITED NATIONS COMMAND, ON THE ONE HAND, AND THE SUPREME COMMANDER OF THE KOREAN PEOPLE'S ARMY AND THE COMMANDER OF THE CHINESE PEOPLE'S VOLUNTEERS, ON THE OTHER HAND, CONCERNING A MILITARY ARMISTICE IN KOREA

PREAMBLE

The undersigned, the Commander-in-Chief, United Nations Command, on the one hand, and the Supreme Commander of the Korean People's Army and the Commander of the Chinese People's Volunteers, on the other hand, in the interest of stopping the Korean conflict, with its great toll of suffering and bloodshed on both sides, and with the objective of establishing an armistice which will insure a complete cessation of hostilities and of all acts of armed force in Korea until a final peaceful settlement is achieved, do individually, collectively, and mutually agree to accept and to be bound and governed by the conditions and terms of armistice set forth in the following Articles and Paragraphs, which said conditions and terms are intended to be purely military in character and to pertain solely to the belligerents in Korea.

ARTICLE I

MILITARY DEMARCATION LINE AND DEMILITARIZED ZONE

1. A Military Demarcation Line shall be fixed and both sides shall withdraw two (2) kilometers from this line so as to establish a Demilitarized Zone between the opposing forces. A Demilitarized Zone shall be established as a buffer zone to prevent the occurrence of incidents which might lead to a resumption of hostilities.

2. The Military Demarcation Line is located as indicated on the attached map (Map 1).

3. The Demilitarized Zone is defined by a northern and a southern boundary as indicated on the attached map (Map 1).

4. The Military Demarcation Line shall be plainly marked as directed by the Military Armistice Commission hereinafter established. The Commanders of the opposing sides shall have suitable markers erected along the boundary between the Demilitarized Zone and their respective areas. The Military Armstice Commission shall supervise the erection of all markers placed along the Military Demarcation Line and along the boundaries of the Demilitarized Zone.

5. The waters of the Han River Estuary shall be open to civil shipping of both sides wherever one bank is controlled by one side and the other bank is controlled by the other side. The Military Armistice Commission shall prescribe rules for the shipping in that part of the Han River Estuary indicated on the attached map (Map 2). Civil shipping of each side shall have unrestricted access to the land under the military control of that side.

6. Neither side shall execute any hostile act within, from, or against the Demilitarized Zone.

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