I had plenty of time last week to pour over the news agency wires and marvel at the latest confusion over the six-party talks. Despite Xinhua’s diplomatic desk being a few metres up the corridor, I rely firmly on Reuters and AP for the breaking news for obvious reasons. Substitute pretty much any country you like for Romania in this article and it is nearly always applicable. I have long suspected the overuse of the cut and paste function in the diplomatic section.
Not that I’m being given much of Xinhua’s convoluted spiel, translated word for word from Foreign Ministry statements, at the moment. This may have something to do with me completely losing the plot last week, launching a tirade of foul abuse at the unfortunate soul who had concocted the latest piece of unintelligble nonsense and tossing the wretched hard copy on the floor. I was told my anger was “unnecessary” and I would have to agree entirely. On a selfish note, I felt much better. Especially when I had more time to appreciate the KCNA’s latest poetry, which is still a couple of notches of below Xinhua in terms of logic but a darn sight more pleasurable to read.
However, I have to say the reporting of the breakdown of the six-party talks on the foreign wires grated somewhat. There appeared to be a total lack of analysis. I appreciate a news agency is required to be as objective as possible but international newspeak always requires interpretation. I was particularly suprised at AP’s effort - and therefore half the world’s press - which allowed the U.S. negotiator to lay the blame for the collapse of the negotiations firmly at the door of North Korea.
“The problem has been that the North Koreans said they must have this BDA matter finalized before they move forward on the other issues and that sort of sequential approach slowed us down,” Christopher Hill, the chief American envoy, told reporters.
This was then quickly followed by a quote from some guy from a Washington think-tank to ram home the downright stubbornness of those naughty Kim Jong Ilians.
Nicholas Eberstadt of the American Enterprise Institute, a Washington think tank, said the stalemate could have been predicted as Pyongyang was following its usual tactic of committing, then pulling back.
“This is what they do and no one should be surprised,” Eberstadt said in a telephone interview. “It’s absolutely business as usual. They don’t play until you pay. Then they will return to discussions to find out what they can get at the next round.”
I rarely stick up for North Korea (how pleasurable it is to be released from the Xinhua shackles and be able to ignore that most ludicrous of abbreviations, DPRK) but hang on a minute. North Korea made it quite clear the talks could continue once the 25 million U.S. dollars had been transferred to the Bank of China from Banco Delta Asia in Macao. Ah, behold the 13th paragraph, when the true situation begins to emerge:
Russian envoy Alexander Losyukov, who also left for home Thursday, was quoted by ITAR-Tass news agency as saying “the whole problem came from the American side.”
He said the United States failed to assure the Chinese side that the Bank of China could receive the funds without fear of U.S. sanctions or discrimination by the banking community and the U.S. government.
What blatant contempt for the basic news-writing principle of the inverted pyramid! That shining gem of a rule that taught budding writers, within the first ten minutes of journalism school, to put rescuer, cat and tree all in the lead paragraph. This is the reason for the breakdown of the talks but, it seems, Russian words do not carry much weight.
The Reuters report chose to elevate the Japanese chief negotiator’s comments to prominence.
“It is deplorable that North Korea did not show a positive stance and stuck to its position to the bitter end that it would not take part in talks unless the funds were returned,” Japanese chief negotiator Kenichiro Sasae said.
This is before they chose to reveal the crux of the issue - China’s seeming inability to persuade the Bank of China (BOC) to accept 25 U.S. million dollars of dirty money from a bank that has been crippled by U.S. financial sanctions. Apparently, it is frightened the money - which after all is a piddly sum for the BOC - will damage its credit rating. Can’t imagine why.
Chinese chief envoy Wu Dawei said the problem hinged on convincing the Bank of China to accept the transfer.
“Whether or not the Bank of China can fulfil this responsibility, we need to consult with them,” Wu told a news conference. “This is a matter that cannot be decided by the government.”
A Bank of China spokesman, asked about reports it was blocking the transfer, said it had not been asked to conduct the transaction and stressed that the bank was obliged to abide by anti-money laundering and anti-terrorism laws.
Now, I am confused. Forgive me for being sceptical but BOC, as a state-owned bank, should dam well do what the Chinese government tells it to do. Except it hasn’t been told anything. The matter can not be decided by the government you say? Well that claim is shot to pieces by the BOC spokesman saying the bank has not been asked to transfer the money. If it was asked, would it be in a position to say, “actually boss, no can do”?
The clear problem here is a disagreement between the U.S. and China - North Korea is merely waiting for them to sort it out. China is reluctant to harbour the money on the mainland and the U.S. has failed to assure it that there will be no problems for the BOC. Sorry if this is so incredibly obvious but my point is this: the news reports from both AP and Reuters fail to provide the international press with the proper story. Which means the phrase “bloody North Koreans” will be uttered by the majority of the world’s newspaper readers.
More galling is a brief look at the minutes to the Chinese Foreign Ministry spokesman’s press briefing (always a barrel of laughs by the look of the transcripts), where all the right questions were asked, including:
Q: I asked the Bank of China of how to resolve the transfer issue today and was told that the Foreign Ministry will have the answers. Has the Chinese Foreign Ministry discussed the issue with the Bank of China?
A: If the Foreign Ministry has the answer, this issue has already been resolved. Now this issue is still under discussion.
Still, I won’t be turning to Xinhua’s coverage just yet.
meiguoren | 28-Mar-07 at 12:23 pm | Permalink
An illuminating update from the New York Tims website yesterday:
HONG KONG, March 26 — A largely foreign-owned North Korean bank has emerged as a major obstacle to a deal that would allow six-party negotiations over North Korea’s nuclear program to move forward.
The agreement between the United States and North Korea for the release of $25 million frozen for 18 months in accounts in a Macao bank has been rejected by the North Korean bank, Daedong Credit Bank, the largest single account holder.
In two letters sent to the Monetary Authority of Macao, the bank has said that it will take legal action if any of its frozen funds are moved in accordance with the agreement reached between American and North Korean nuclear disarmament negotiators. The bank is based in the North Korean capital, Pyongyang.
Resolution of the issue has been a stumbling block to carrying out an accord reached Feb. 13 that requires North Korea to shut down its nuclear programs in exchange for economic aid and diplomatic concessions.
The United States has tried to solve the impasse over the funds frozen in the Macao bank, Banco Delta Asia, by offering to have the money placed in an account in the Bank of China under the control of North Korea on the understanding that it would be spent for humanitarian purposes.
A representative of the Daedong Credit Bank, which has about $7 million frozen in Banco Delta Asia, has told the authorities in Macao, though, that it will not accept its funds being placed under the control of North Korea or moved to the Bank of China.
Chris O'Brien | 28-Mar-07 at 8:23 pm | Permalink
Always good to see the theories of an ill-informed blogger shot down in flames. Although, little did I suspect the problem to lie with a fellow countryman!
http://www.guardian.co.uk/worldlatest/story/0,,-6511938,00.html
Jim | 29-Mar-07 at 6:53 am | Permalink
Great post, but just because this is a copy-editor’s blog, can I pedantically point out that you have to pour over the news agency wires where you should have ‘pore’.
Chris O'Brien | 29-Mar-07 at 8:37 pm | Permalink
Copy-editing always welcome, Jim. It is always galling to discover you have been spelling a word wrong all your life.
bingster | 04-Apr-07 at 4:00 am | Permalink
Wonderful analysis!
The key obstacle couldn’t be some N.Korea bank. Chinese government and Bank of China are more than capable of dealing with any N.Korea bank.
The thorn in back is definitely the US Treasury Department. China holds enormous foreign reserve, mostly in US dollar denomination, BoC would be royally screwed if it subjects itself to potential future sanctions. Unless US Treasury dept can give it absolute guarantee, BoC wouldn’t touch the paltry $25 million with a 10 feet pole.