Spokesperson's Office of the Unification Ministry 3703-2304-6
Sunday October 13, 2002
Contact: Park, Sang-Don
Dialogue Department #2,
Office of South-North Dialogue
Results of Working-Level Contacts
for Restoring Cross-Border Rail
and Road Links
Between the South and North
o The South and North held working-level meetings for the reconnection of cross-border road and rail links at Mt. Kumkang from October 12 to October 13.
- Among those attending the meetings were the South's Unification Ministry Director General Jo Myeong-Gyun and the North's Railways Ministry Director Park Jong-Song.
o After holding three meetings beginning from October 12 until this morning, both sides agreed upon the List of Items and Quantities of the First Batch of Building Materials and Equipment to be Provided to the North and the Delivery and Receipt Procedures for Building Materials and Equipment.
o Our delegation is scheduled to return home by the Seongbongho ship tomorrow.
1. Background Materials for the Press
2. List of Items and Quantities of the First Batch of Building Materials and Equipment to be Provided to the North.
3. Delivery and Receipt Procedures for Building Materials and Equipment.
Spokesperson for the Ministry of Unification
Attachment 1: Background Materials for the Press
Agreement on the First Batch of Building Materials and Equipment to be Provided to the North Paves the Way for Smooth Progress in Construction Work
o An agreement has been reached on the list of items and quantities of the first shipment of building materials and equipment which the South will provide on credit to the North, for the construction of the northern parts of the railways and roads.
o The list of items have been decided in consideration of the North's request and to ensure speedy completion of the construction work; items that can be sourced from the North and that would run counter to sentiment in the South have been excluded.
- The decisions are aimed at providing only essential items and minimum quantities of building materials and equipment necessary to complete the project, and were reached based on broad consultation with relevant agencies and domestic experts.
o The building materials and equipment we will be providing this time consist of 78 items in all.
- Out of the 78 items, 33 are materials that will be provided for a charge. The remaining 45 items are equipment, 20 of which are to be provided for a charge, and 25 to be leased for a charge. All items are to be provided in the form of loans.
o Both sides will continue the discussions on the remaining batches of supplies in the second meeting of the South-North working-level council for the reconnection of cross-border rail and road links.
Accord on Delivery and Receipt Procedures
Helps Increase Transparency in Distribution
o The accord on the procedures for delivering and receiving building materials and equipment requires clear identification of the supplier and the establishment of mechanisms to increase transparency in the distribution process.
o The agreement to identify the supplier on the packaging of the supplies helps make it known that the provider is the Republic of Korea.
o A number of institutional mechanisms have been put in place to increase transparency in distribution and to dissipate concerns over the possibility that the supplied materials and equipment might be used for other purposes.
- Officials from the South shall oversee the delivery and receipt operations on the site, and be permitted to take photos of the unloading process and of the delivered materials and equipment.
It has been agreed that the North shall notify the South in writing on the results of the deliveries and usage of delivered items within 30 days from the date of receipt.
In particular, it has been agreed that officials from the South shall be permitted to visit the northern construction sites to provide technical assistance for the supplied materials and equipment and to ensure proper operations, as well as to verify with their own eyes that the supplies are being used on the sites.
Significance of This Accord
o This Accord involves detailed agreements on material and equipment shipments and on their delivery and receipt procedures. This paves the way for the smooth implementation of the project to reconnect the cross-border Gyeongui and East Coast railways and roads.
o The reconnection of the Kyungui and East Coast lines will jumpstart the exchange and cooperation process on the Korean peninsula.
- The Kyungui Line will facilitate the development of an industrial complex in the northern city of Gaeseong, and help to reduce logistics costs for cross-border transactions. The East Coast Line will be used for overland Mt. Kumkang tours and for reunions of separated families.
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