*EPF407 07/19/01
Transcript: State's Kelly on Upcoming ASEAN Regional Forum
(Assistant Secretary on "Dialogue" program July 18) (7220)

Secretary of State Colin Powell will be in "a listening mode" when he participates for the first time in the ASEAN (Association of Southeast Asian Nations) Regional Forum to be held in Hanoi next week, says James Kelly, assistant secretary of state for East Asian and Pacific affairs.

Kelly spoke with members of the press from Tokyo, Bangkok, Singapore, and Seoul in a "Dialogue" program conducted July 18 by the State Department's American Embassy Television Network.

"We go with no set agenda of issues or particular results that we have to obtain," he said.

Kelly noted, however, that one major area of concern to the entire region is the resumption of reengagement efforts between North and South Korea.

"Our policies involve very close coordination with our Korean allies, not to mention our Japanese allies," he said of American efforts to alleviate tensions on the Korean peninsula.

Regarding U.S.-China relations, Kelly acknowledged the two nations experienced some "difficult days" earlier this year.

"But it's my sense that we are moving along very well right now," he said. "I have had a number of meetings with Chinese colleagues within the last couple weeks, and we seem to have a lot more to agree about than to disagree with.... So I see our relations picking up."

Secretary Powell will travel to China after the ASEAN meetings in Hanoi to lay the groundwork for President Bush's visit to China in October, Kelly said.

Following is a transcript of the program:

(begin transcript)

"DIALOGUE"
UNITED STATES DEPARTMENT OF STATE
Office of Broadcast Services
Bureau of Public Affairs
Washington, D.C.

GUEST: James Kelly, Assistant Secretary for East Asian and Pacific Affairs, U.S. Department of State

TOPIC: Scene-Setter for ASEAN Regional Forum in Hanoi

POST: Tokyo, Bangkok, Singapore, Seoul

HOST: Judlyne Lilly

DATE: July 18, 2001

TIME: 21:00 - 22:00 EDT

MODERATOR: Good morning, everyone, and welcome to the American Embassy Television Network. I am Judlyne Lilly, your host for today's "Dialogue."

The Association of South East Asian Nations, or ASEAN, was formed in 1967 to promote political and economic cooperation and regional stability. A decade later ASEAN established dialogue partner relationships with other countries with interests in the region, including the United States.

In 1994, ASEAN established the ASEAN Regional Forum, or ARF, which focuses on regional security issues. Next week the 34th ASEAN meeting and the eighth ASEAN Regional Forum will be held in Hanoi, Vietnam. To discuss the Bush administration's East Asia policies and the upcoming ASEAN meetings in Hanoi, we are privileged to have with us today assistant Secretary of State for East Asian and Pacific Affairs, Mr. James A. Kelly.

Assistant Secretary Kelly has a long and distinguished history in Asia-Pacific political, security, economic and business issues. From 1994 to this year, Mr. Kelly was president of Pacific Forum of the Center for Strategic International Studies. Mr. Kelly served as special assistant for national security affairs to President Ronald Reagan. He was a senior executive for Asia and the Pacific for both the National Security Council and the Department of Defense. Assistant Secretary Kelly, we are honored to have you with us today for this "Dialogue" program. I understand as a preparation for our guests you do have an opening statement.

KELLY: Thank you very much, Ms. Lilly, I'd be delighted. I'd just like to greet our friends at four locations in East Asia, and say that I am looking forward to meeting as many of you as possible next week, because we are bringing Secretary of State Colin L. Powell to East Asia for the first time since he has become secretary of State last January 20th.

Secretary Powell is now in Europe at the G-8 foreign ministers meeting, but he is going to come home ever so briefly and then head off on Sunday towards Japan. We arrive in Japan on Monday, and will be staying there only for a short time, until Tuesday afternoon, whereupon we go on to Hanoi for the meetings already mentioned of the ASEAN Regional Forum and the ASEAN post-ministerial conference.

From then on next Friday the secretary and his delegation will move on to Seoul in South Korea. Then on the following day, a week from Saturday, he will be traveling to Beijing and China. This will be the secretary's first chance to visit China on his own in some 16, 17 years. After that the secretary and a rather tired delegation are going to head on to Canberra, Australia, for a conference called the U.S.-Australian ministerial. This involves the U.S. Secretary of Defense and Secretary of State, the Australian Foreign Minister and Minister of Defense, and also the chiefs of the military services from both countries to talk about bilateral and regional issues.

I'll be happy to take your questions and talk about some of the Secretary's aims during this important but very hurried trip.

MODERATOR: Thank you, Assistant Secretary Kelly.

We would like to acknowledge our interactive participants and invited guests in Tokyo, Bangkok, Singapore and Seoul, as well as our viewing audience in Canberra.

Now we are ready for the interactive portion of our broadcast. We will begin with Tokyo. Please start with your first question or comment. Go ahead, Tokyo.

Q: Thank you. Mr. Kelly, my name is Yuka Safa (ph). I am a reporter at the foreign news department at the Tokyo Broadcasting System. First of all, thank you very much for giving me this opportunity to talk to you directly.

My first question inevitably would be what subjects are likely to be brought up at the upcoming ASEAN Regional Forum, and what will be the focal points, and what do you, as the representative of the United States, are going to emphasize the most?

KELLY: Well, the ASEAN Regional Forum is of course the region's multilateral security dialogue, so it addresses the questions that upset the stability of East Asia. And in that it has been moving in a deliberate way towards several issues, including dealing with questions of preventive diplomacy and with confidence-building measures, and having a discussion, a rather general discussion of security problems and issues in the region, including the Korean Peninsula, the South China Sea, and many other related topics. This of course goes on with quite a number of countries for only one day. So there is a real limit to the kind of depth that ASEAN is able to cover.

For this first visit by Secretary Powell to the ASEAN Regional Forum we are very much in a mode of getting to know our South East Asian hosts and our fellow dialogue partners on this, and to listen to the concerns that they have. We go with no set agenda of issues or particular results that we have to obtain.

MODERATOR: We are going to go on now to Singapore. Go ahead, Singapore, for your first question.

Q: Hello, Mr. Kelly, my name is Paul Jacobs. I'm from Straits Times newspapers. There are concerns being expressed within ASEAN that the grouping and the region is losing attractiveness, and perhaps its appeal and influence. Given the current economic slowdown and political problems in countries like Indonesia, from where you sit in Washington, how does the Bush administration view all that has been happening, and how optimistic are you and what are your concerns for the region economically?

KELLY: Unquestionably in this time the economic concerns are what dominate each nation's wishes and desires, even if the forum is intended to talk about security issues.

Now, during the post-ministerial we will clearly start getting into those economic questions. And you are right, Mr. -- the gentleman from the Straits Times -- that the aftermath of the Asian financial crisis of several years ago is still with us, and it's still a serious problem. There has been diminishment of investment. Some countries have some very distinct and serious concerns. Not the least of it is the United States; itself has had some cutback in demand, and therefore the number of imports that we would see from countries of Asia is going, down just a bit, but enough at a difficult time that it is quite severely felt.

So I think there is going to be an interested exchange among Secretary Powell and his colleagues from ASEAN certainly, not to mention those from Japan, China and Korea and other places, about these problems, and how they are seen by the people who are in the region. That's very much the hallmark of Secretary Powell's policies and his interests. He wants to get to the region, look people in the eye, and find out what their concerns directly are. And we are expecting to hear these in high fidelity.

MODERATOR: Thank you, Singapore. Now we go to Seoul for your first question.

Q: Hello, this is Hanyan Park (ph) from MBC Television. My first question is: The Bush administration has declared that the issue of conventional weapons will be included along with missiles and nuclear weapons issues in talks with North Korea. Is the conventional weapon still at the top of the agenda? And do you think that South Korea should play the leading role regarding the talks with North Korea?

KELLY: With respect to issues dealing with North Korea, the remarkable accomplishment of South Korea, especially in the summit meeting held June a year ago, stands very strong. It's my own belief that the only way that the serious questions of war and peace on the Korean Peninsula will ever be solved is in the direction of talks between the two Korean sides themselves.

With respect to the American role, as you may know, the U.S. conducted a policy review, and in early June that was concluded and President Bush issued a statement that we would in fact be entering into dialogue with the North Koreans, the timing and location to be their choice, and that we would be interested in questions on the three areas you mentioned. But we did not sign any fixed agenda. We did not set up any preconditions to the meeting, and we are anxious to just get the talks going and find out that there may be a range of concerns.

Now, on the Korean Peninsula along the DMZ, there are, as you know, a huge number of troops that confront each other. There are some American troops, but a far greater number of South Korean troops, probably in the nature of 450,000 to the Americans' 25,000 ground troops close to the DMZ. And they are facing upwards of 650,000 or 700,000 North Korean troops across the barrier. So that the conventional balance is very much of a concern. But the very size of the proportions indicates that it certainly is going to be a major concern for South Korea, and our policies involve very close coordination with our Korean allies, not to mention our Japanese allies, on questions of this sort.

MODERATOR: Thank you, Seoul. We are going to return to Bangkok now for their first question. Go ahead, Bangkok.

Q: Good morning, Mr. Kelly. My name is -- (inaudible) -- from the Department of ASEAN Affairs, Ministry of Foreign Affairs of Thailand. Well, we would very much like to know your personal contributions to the upcoming meeting in Hanoi, as well as your view on how the U.S. perceives the role of ASEAN within the ARF process. Thank you.

KELLY: Well, thank you, questioner. My own role is to help lead the staff in preparing our secretary as well as we possibly can for the people and the issues, which he will meet in Hanoi.

With respect to ASEAN, this effort over the years, as our host has suggested at the beginning of the show, goes back a long time. My own involvement in ASEAN meetings has been absent while I have been out of government for a while. But I remember very well in the early '80s when there were five ASEAN members and six dialogue partners. Now we are looking at 10 ASEAN members and 10 dialogue partners. This is a measure itself of the accomplishment that each of the ASEAN countries has brought to this, which can never be taken away by any years of economic distress or weakness.

This accomplishment in getting together in a world forum setting with interested countries from around the world is something that is very valuable, and that's really what we are looking forward to introducing ourselves and introducing our secretary to people in the region so that they can get to know him better.

MODERATOR: Thank you, sir. And thank you, Seoul. And now we return to Tokyo and TBS TV for their questions for Assistant Secretary Kelly. Hello again.

Q: Hello again -- (inaudible) -- TBS again. Now, going back to the issue of the Korean Peninsula, how do you, Mr. Kelly, view the small diplomacy that North Korea has been engaged in since the ground-breaking summit between the North and the South last year by normalizing the ties and entering into new relationships with several nations? And what are the new challenges, if there are any, at the second ARF meeting with North Korea this year?

KELLY: Well, North Korea's small diplomacy is good news any way that you look at it. Getting that particular country more involved in affairs around the world is something that's very positive, and it's very much what President Kim Dae Jung, I think, was seeking when he made his historic visit to Pyongyang a year ago.

Right now the major issue is when the North and South begin to reengage, because we in the U.S. Department of State -- and I think very many Americans -- hope that Chairman Kim Jong Il of North Korea will be able to visit the South and reciprocate the visit of President Kim Dae Jung, and hopefully do so before the end of the year.

As I mentioned earlier, the Korean Peninsula and the relations between the two Korean sides are the key issues.

Now, at ASEAN, for the second year, if I am not mistaken, we will have representatives from North Korea, and we are looking forward to meeting them there. But the principal location of our dialogue will be between the two countries when we get a response for our suggestion of the beginning of that that we took to New York several weeks ago. There have been some questions, but we are still not certain whether the North has accepted our offer to begin some talks.

Q: That is to say the talks between the North and South?

KELLY: No, I was referring to the talks between the U.S. and North Korea. In my answer I was talking both talks between the two Korean sides, which we hope will be finished this year, and the dialogue between the U.S. and North Korea that was announced by our president in early June, and which we have yet to receive a response to our inquiry.

Q: What could be the earliest possible date for that to happen, Mr. Kelly, that you predict?

KELLY: I am not in the prediction basis. I hope it will happen very soon. We would like to have an answer, but I think realistically it's unlikely that the U.S. and the North would be involved in talks somewhere before early August. But if the North Korean side would like to do it sooner, we would be delighted to accommodate.

Q: Now, as for talks between North Korea and Japan, it has made smaller progress from what -- do you say is disconcerting to any level of -- in terms of the overall Asian Pacific security?

KELLY: The relations with North Korea with first of all the Republic of Korea, namely South Korea on the one hand, the United States second, and Japan on a third, are really very different. We have different interests, different situations. South Korea and the U.S., of course, have lots of military troops involved. Japan has a history with the entire Korean Peninsula. Yet it has been a generous donor of food aid and rice, in particular, to some of the very serious hunger problems that North Korea has had.

So we join our friends in both Japan and South Korea in hoping that the North Korea-Japan relationship can pick up too. But, as you say, it seems to have been moving a little bit slower. But at the moment I don't think any of these are speeding along.

Q: In terms of South Korea and Japan, how do you see the recent problems that have arisen regarding the history textbook problem?

KELLY: Well, the U.S. has a solid interest in a stable and warm situation in Northeast Asia. President Kim Dae Jung's visit to Japan just a very few years ago was remarkable in the warmth and sense that it developed. I have to note that this textbook question has certainly caused feelings to be high, at least on the Korean side. And we in America hope that this can be resolved as soon as it possibly can.

Q: Thank you. Now, in your view what would be the right or ideal path to take for the trilateral relationship between Japan, Korea and China, or all three with America?

KELLY: There is no single right path for this to take. The three countries you mention -- Japan, South Korea and China -- are the partners with the 10 ASEAN countries in the so-called ASEAN-Plus-3 dialogue, a very interesting development that began as just economic matters and seems that it may grow into something more. This is a very healthy kind of dialogue within East Asia, and the various relationships of Japan and China, and Japan and Korea, and Korea and China, and China and South Korea -- these are all matters that are doing rather nicely on their own and that are very likely to get better as the economic strength of Japan is restored, as China develops the economy that it has been moving so significantly toward, and as South Korea steps over its own obstacles, not to mention maintaining peace and security along the lines of the engagement with North Korea that we have seen over the last year.

So there is no set formula. This is something everybody has to work at. And I think they are doing a pretty good job at it.

Q: Will that be discussed at the ARF at all?

KELLY: At the ARF, the Korean Peninsula and the problems it may pose to regional security has been an issue for a couple of years, and I think it will be touched on, since other security questions are probably more likely from other parts of the region.

MODERATOR: Thank you, Tokyo. We now go to Bangkok. Go ahead, Bangkok, for your questions.

Q: Secretary Kelly this is Koonpanatan (ph)-- (inaudible) -- calling from -- (inaudible) -- University.

KELLY: Koonpanatan (ph), how are you? I'm glad to hear your voice sir.

Q: -- process on preventive diplomacy in the ARF has been very slow, what can be done to improve the situation?

KELLY: Koonpanatan (ph), it's very good to hear your voice, even though I can't see you so far away.

With respect to the preventive diplomacy in the ASEAN Regional Forum, I don't think we have had expectations of this rather tentative process moving along, if only because there are so many partners with very many different interests and histories. So, frankly, after some years out of government trying to wrestle with these issues alongside of you and track two fora, such as CSCAP (ph), we have to -- I am rather impressed that the government-to-government process has moved along as well as it has.

What I think we are seeking in the ARF is a process that steadily moves the countries to understand each other, to get a sense of the security issues, and to move in ways that leave everyone feeling secure and safe towards ways of solving and addressing these problems when they become more acute. We are certainly not there yet, but I think the progress is fairly encouraging as far as I am concerned.

Q: Thank you. Mr. Kelly, last year when Thailand was chair of the ASEAN Regional Forum we took a number of initiatives to move the ARF forward, including an enhanced role of the ARF chair. We appreciate U.S. support in this regard. What role do you think the ARF chair should play to further enhance the ARF process? Thank you.

KELLY: I'm glad you brought that up. I really support the kind of role for the ARF chair, which for those who may not be familiar is a role that lasts for an entire year. And I think your foreign minister did a great job in that position before.

We note that that progress hasn't been entirely fulfilled. This is not distressing, because, as I mentioned, each of the countries of ASEAN are really so different that the paths that they want to move are naturally a little bit different.

I thought the leadership though that Thailand exercised a year ago was outstanding, and I hope that we can continue to build on it. We are certainly going to try at the meetings that come up next week.

Q: Mr. Secretary, this is Koonpanatan (ph), again. Knowing your expertise and your long participation in the region, what would you think -- what do you think about increasing roles of a country like China and Russia in becoming increasingly important in the development of the ARF? Do you agree with this trend?

KELLY: Well, it's good news because the development of a stable developing China, able to feed and pay its people, as it has done in so much of a remarkable economic growth, is one of the stories of the last century, and it's likely to be one of the big stories of this century too. The Russian Federation has had a tougher time. Both are integral and essential parts of East Asia. And if they are able to play a significant role that they certainly are showing the way doing in matters of peace and security in the region, that's good news as far as the U.S.A. is concerned.

Q: Mr. Assistant Secretary, bilateral ties as well as multilateral institutions constitute an important part of the security architecture of the Asia and Pacific. What role does the Bush administration accord to the multilateral institutions in addressing regional security issues?

KELLY: Well, the core of the U.S. relationships in East Asia are bilateral alliances. But the multilateral fora, such as the two that you will visit next week, and such as the very important APEC meeting and grouping, which will have its meeting in Shanghai in October, and as you probably know President Bush intends to visit, to attend, these multilateral fora fill out the picture, provide an opportunity for mutual understanding, for transparency of the kind of policies for each to understand not just what one other country is doing, but what several of them are doing in terms of interacting with each other, so that President Bush's foreign policy as executed by Secretary of State Powell very much includes strong support and participation in multilateral fora. And that is why President Bush is going to Shanghai in October, and that's why Secretary Powell is coming to Hanoi next week.

Q: Yes, may I put you on the spot with this question, please?

KELLY: Please.

Q: The progress on the implementation of the -- (inaudible) -- South East Asian Nuclear Weapons Free Zone in my opinion depends largely on the nuclear weapons states like the United States. What would you think -- what would the United States do to improve the progress? China recently has been attempting to do some progress in this regard. Thank you.

KELLY: Your question is specific. I am not sure if it puts me on the spot. But we get into a lot of detailed issues about the South East Asian Nuclear Weapons Free Zone, and I am not exactly certain what Chinese initiative you are referring to.

With respect to the U.S. of course, it's been more than 10 years since the former President Bush withdrew all tactical nuclear weapons from deployed American forces. So it's not something that stands up and looks at us so much now.

The testing of nuclear weapons around the world is in abeyance now. There least by most we had an unfortunate exception in South Asia just a couple of years ago. But the development and deployment of nuclear weapons is something that is being cut back.

Now, on May 1st our president, President Bush, gave a rather significant speech about the American strategic framework. Now, one part of that, missile defense, got all the attention. But we really -- there were three other parts that were just as important. One of these had to do with trying to prevent proliferation of not only nuclear weapons but other weapons of mass destruction, to counter proliferation, and for the United States to make unilateral reductions in our own strategic missile and nuclear forces. So this is something that we have begun to discuss with the other nuclear powers, and to explain to our friends who do not have that kind of weaponry. I myself made some visits to the region to do this, and we intend to have a lot more dialogue on that score. So I hope that some of that answers what you were driving at.

Q: Mr. Kelly, my last question. I am very much struck with your opinion on the flexibility in Asia when you testified in Congress. Would you see some of your ideas being discussed at the ARF in the next few days?

KELLY: I'm not exactly sure what flexibility you are talking about. But to the extent that I was trying to explain American policy, you can be sure that Secretary Powell is coming in to do that in the larger multilateral meetings and in the very numerous bilateral meetings he is going to have to either meet new acquaintances among the foreign ministers, and to renew acquaintances with others, such as Foreign Minister Surakiat of Thailand.

MODERATOR: Thank you, Bangkok. Now we'll move on to Singapore for your questions. Go ahead, Singapore.

Q: Hello, Mr. Kelly, this is Danny from China News Agency in Singapore. My question is: How will you describe the current state of U.S.-China relations? Is it trying to reopen military exchanges with Beijing?

KELLY: Next week Secretary Powell will be visiting China, and this is very much to help lay the groundwork for President Bush's visit in October. President Bush is not only going to the multilateral ASEAN meeting in Shanghai, but he is going to be going on to Beijing to visit China as well.

As many know, there were some difficult days, including some misunderstandings in the Sino-U.S. relationship in the early part of this year. But it's my sense that we are moving along very well right now. I have had a number of meetings with Chinese colleagues within the last couple weeks, and we seem to have a lot more to agree about than to disagree with, although any time you have two countries that are so large there is always plenty of both there. So I see our relations picking up.

With respect to when the military contacts will develop, I think that probably is a natural part of our broad relationship. But we are looking to have some meetings of which the dates have not yet been set, one of them on the Military Maritime Cooperation Agency, the so-called MMCA, which we hope to have a meeting. So I think there should be a step-by-step process in trying to establish those kinds of contacts that you were referring to.

Q: Mr. Kelly, this is Paul Jacobs from the Straits Times again. There is an impression that the Bush administration I guess has shown little appreciation for regional concerns with regard to how Washington and Beijing get along, when you push for your missile defense system, and you arm Taiwan, when you criticize Beijing over human rights, it will prompt obviously a Chinese build-up or a more assertive China in this part of the world. So what message do you have for meeting in Hanoi to ASEAN officials as they try to map out this new -- you know, their own strategy to deal with a more competitive U.S.-China relationship?

KELLY: Well, one thing I know from visits to the region is that everybody there wants to see a sound Sino-U.S. relationship. And we are going to be there to talk -- Secretary Powell is -- to explain to people that that's our goal too. And we think it's also the goal that the Chinese side has as well.

As I mentioned earlier, we see plenty of development of improved relations we are heading through on many different issues. At the same time there are things that go on in China of which we simply don't approve, and without trying to be disrespectful or arrogant in any way we have to point these out. Some of them, for example, have included the arrest, under very uncertain and untransparent charges, of American citizens within China. And things like that we're naturally concerned about. And we think that the U.S. and China can have a relationship that is far stronger than would be hazarded by raising issues of that kind. And that's what we are experiencing now.

Q: Hello, Mr. Kelly, this is Danny, China News Agency again. The India-Pakistan summit got off to a very encouraging start but ended in disappointment over the weekend. Can we have your comments on that? And will Washington do anything to get the two countries to talk to each other again?

KELLY: My area is of course primarily East Asia, but I did follow the India-Pakistan summit with some considerable interest. It's one of the things I am looking forward to is seeing India as a dialogue partner and joining with us in Hanoi.

I think that this is a significant beginning of a process, and I think it's one that has to be worked out among the South Asians themselves, and that the U.S. does not really have a great deal to contribute to these two countries. And the good start -- I guess the problem at the end was over the precise wording of the communiqu? I am still pretty encouraged over this, and I think we can look for subsequent efforts by both sides to work on these differences. But the Pakistan-Indian differences have been going on, as you all very well know, for a long time, and they are not going to be cured in a few minutes.

Q: Mr. Kelly, just back to China for a bit. I still want to get a sense from you what kind of specific messages you might be bringing to the meeting, because like I said the impression we still keep getting here is that you do more to -- what's the polite term to use -- piss China off than help things along.

KELLY: We certainly don't want to antagonize China, and we don't intend to. Secretary Powell is going to be visiting Beijing, and this is his first visit, and it's a good time to focus on the many, many areas on which we can agree, whether it be on Thailand to the south or certainly in terms of the problems of the next few years on the Korean Peninsula and the stability of that peninsula and the avoidance of serious conflict there. These are areas on which China and the U.S. have common interests. On top of it, with the awarding the Olympics to China, with the nearly completed accession to the World Trade Organization, with the obvious success and exhibitings of developments that China has completed in Shanghai, I sense China is not feeling antagonized, as to put it one way at the moment. I think they are feeling fairly proud of what they have accomplished, and I think that pride is well deserved. And we are not going there to stick pins in it; we are going there to have a good, honest direct dialogue about common interests which at the moment are considerably greater I think than matters of dispute.

Q: Thank you. Mr. Kelly, this is Danny again. There appear to be insurgency problems in places like the Philippines and Thailand. Are there any plans from Washington's end to tackle the problems with these countries?

KELLY: Well, we want to hear from each of the countries about its problems. In the Philippines, I am not sure if this is an insurgency problem or if it's a crime problem. I do know one thing, that three American citizens peacefully enjoying life in a beautiful Philippine resort were kidnapped and taken hundreds of miles across the sea to be held against their will by very dangerous men in a jungle environment. We hope and support the efforts that the government in the Philippines is making to free these people.

At the same time, in Indonesia we support the territorial integrity of Indonesia. We support the democracy there. We support the development of constitutional government that is going on. And we support the programs of autonomy that President Wahid of Indonesia has suggested for places such as Aceh. So we are anxious to talk with our dialogue partners and try to understand their problems. And if there is some way we can help out, we want to know about that too.

MODERATOR: Thank you, Singapore. And now let's go on to Seoul for your questions. Go ahead, Seoul.

Q: Hello, Mr. Kelly, my name is -- (inaudible) -- I write for a Korean newspaper, the -- (inaudible). Some law makers of the Korean ruling party insist that the U.S. Republicans invited North Korean Wong Jon Yap (ph) to reinforce their argument that North Korea is a rogue state, and to secure the -- (inaudible) -- defense missile program and other hot-line policies. And they suggested that the Korean government should link Wong's (ph) visit to Washington (the issue of the former North Korean ambassador to Egypt, San Song (ph) ?). So what do you think of it?

KELLY: There was a lot in your question, and I don't think I agree with all of the assumptions that were in it. I do understand that this former senior man from North Korea, Wong Jon Yap (ph), has been -- at least several American congressional committees have expressed interest in inviting him to Washington and to speaking with him. In the U.S. the Congress, the executive and the judiciary are all very separate parts, and that's something that the Congress is definitely entitled to do.

I don't know whether Mr. Wong (ph) is going to come to America or not. If he does, we will do as good a job as we can to make sure he is safe and let him speak his piece. That is what the Congress is interested in. And, as you probably know, we have all kinds of people from all kinds of parts of the world making all kinds of remarks every day that the Congress is in session. So this is really something, I think, between individuals and the U.S. executive really isn't a part of it.

Q: It's back to the second question. Just yesterday the U.S. defense ministry has declared that the U.S. will close at least 15 major military installations and training facilities in South Korea over the next 10 years. But instead you requested for new land within Seoul. Now, there is some criticism that this is a part of a preparatory step for the U.S.'s missile defense program, and it's also a step to sell the weapons, including missiles and radars, et cetera. What do you have to say about this?

KELLY: Well, I have a lot to say and not much to say. First of all, I did see one press story today along that line, but there is no official initiative to remove some large number of bases.

The fact is the U.S. Department of Defense is going through a detailed review of its policies in a lot of different parts of the world, and a lot of different approaches to things, and I think what you saw was some stories about what some people may have been thinking. And I am not sure at all that these people represented anything even close to policy.

On the other end of that question, the request for more in Korea also strikes me as pretty unusual. And then to link it all with missile defense -- the only thing I can say about that is it's an incorrect assumption and an incorrect connection, and we'll want to look at the details of this as we come into South Korea.

Q: The Clinton administration defined China has a strategic partner, but the Bush administration calls it a strategic competitor, asking Japan for a more important and active role in Asia. Some people say that such a threat has made Japan to turn itself more rightist, provoking a feeling of uneasiness among Asian countries. What would you say to that?

KELLY: I don't agree with that question. First of all, whereas we have rejected as inaccurate the description of China as a strategic partner, which really sounds like it's some kind of an ally -- that didn't seem to fit. In some respects the U.S. and China may be strategic competitors, but in most respects, as I explained earlier, we're sharing the same interests, so that I am not sure that there is any particular single term that describes the Sino-U.S. relationship.

But the -- let's see, the second part of your question was --

MODERATOR: Japan's active role.

KELLY: Oh, on Japan's active role, and whether this policy with which I do not think that in fact adequately describes U.S. policy -- whether this is causing Japan to take some new actions, and the answer is I don't think it is. The U.S.-Japan partnership goes back a long time. It's a very in-depth partnership, the world's two largest economies. We also have of course this alliance, which is quite unique among the various alliances. So, yes, I think as generations change there are people that may be taking new views in Japan. But I think that to characterize this as some sort of remilitarization or some deputization by the U.S. of Japan as its gunslinger in Asia is a gross exaggeration of what's actually going on.

Q: Mr. Kelly, recently seven North Korean expatriates have made their way to the U.N. commissioner for refugees in China. The UNHCR has declared that these people were indeed refugees, but China has denied that there are any North Korean refugees within China. What is your position on this North Korean defectors refugees within China?

KELLY: Our position is that this is a humanitarian issue, and we hope that people such as the seven you mention and the considerable number of others that may well exist will be well treated and securely handled. Let's face it; North Korea has been going through economic conditions that are just enormously serious over several years, reports of people dying in the millions. So it's not surprising that people in North Korea faced with this kind of hardship are going to go wherever they can. It's also not surprising that the country on their border is not enthusiastic about stimulating even more to come. So there are reports, which I find quite troubling about people who have come from North Korea and who are inside of China, and I think some other places as well, living under difficult conditions. And we very much hope that their conditions may be approved. And the seven people you mention I think are very much a part of that.

Q: The U.S. Secretary of State, Mr. Colin Powell, said a few days ago that there has been a bit of a hiccough at the beginning, how your administration would welcome Korean President Mr. Kim Dae Jung, and you will work with North Korea. Now, what do you think Mr. Powell meant with "hiccough," please?

KELLY: I am not sure exactly what the secretary was referring to. In fact, I don't think I am familiar with the full quote. The fact is that President Kim Dae Jung, who came to Washington March 15th, had a very successful meeting with the president.

If you look at the statements that were made at the end of that meeting, the U.S. and President Bush stated its intention to enter into dialogue with North Korea, that it was undertaking this policy review, and it significantly praised the breakthroughs that had been accomplished by President Kim Dae Jung's policy of constructive engagement with North Korea. This was portrayed in many media sources in less than flattering terms, and I think that might be the hiccough that Secretary Powell was referring to. But that clearly has been shown not to be the case with the completion of the American policy review, and the announcement that President Bush made in the early part of June.

MODERATOR: Thank you, Seoul. Let's return to Bangkok now for a short question and a short answer, sir. Go ahead please, Bangkok.

Q: Thank you very much. Well, before I see you next week in Hanoi, Mr. Kelly, perhaps you could tell me how does the United States see the ARF evolving in the future. And, if I may be more precise, how would Secretary Powell be saying to his colleagues regarding the future direction of the ARF? Thank you.

KELLY: Well, first it's my first visit in 12 years, and Secretary Powell's first ever visit to the ARF, we are going to be in more of a listening mode. But I think the movement on confidence-building measures, preventive diplomacy, begins to point the direction of honestly addressing questions. We are looking forward very much to Vietnam chairing the program next week, and Brunei's leadership over the next year. And step-by-step we expect that the ARF is going to become even more a part of the landscape of East Asian security.

MODERATOR: Well, this hour was not long enough. And we hope, Assistant Secretary Kelly, we hope you return with us soon for another dialogue. And before we run out of time, we want to extend our gratitude to Mr. Kelly for being with us here today on our "Dialogue" program. We would also like to thank our viewing audience as well as today's participants in Tokyo, Bangkok, Singapore and Seoul. For the American Embassy Television Network in Washington, D.C., I'm Judlyne Lilly. Have a fine day.

(end transcript)

(Distributed by the Office of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)
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