Pyongyang—South and North Korea yesterday agreed in principle to create institutional frameworks for inter-Korean economic cooperation, including agreements on protection of investment and avoidance of double taxation.
In this second round of ministerial meeting, a follow-up to the June inter-Korean summit, the two sides also decided to additionally arrange reunions of separated family members two or three times this year, while holding working-level contacts next month to negotiate the re-linking of the severed Seoul-Shinuiju railroad.
Chief South Korean delegate, Unification Minister Park Jae-kyu put forward a set of proposals, including the establishment of a hotline between military authorities, in a meeting held at the People”s Cultural Palace, while his North Korean counterpart Jon Kum-jin reacted in a positive way, noting that the positions of the two sides have “something in common.”
Against earilier expectations, the South Korean delegates faced obstacles in their efforts to introduce steps to reduce military tension on the Korean peninsula, as the North Korean delegates initially noted that it is “premature.” However, South Korean officials are set to press the Northern delegates to work out tangible results on this issue until the final moments of negotiations.
“During today”s talks, the two sides put forward specific proposals for the implementation of the South-North Joint declaration and launched discussion in a candid manner,” Park said in a dinner speech following the talks. “We found common grounds in some issues, while remained apart in other,” he added.
To promote human exchanges, chief North Korean delegate Jon proposed that a group of l00 South Korean tourists visit the North”s Mt. Paektu in mid -September for a seven-day tour. After that, the same number of North Koreans would go to the South”s Mt. Halla late next month, Park said, adding the costs would be taken up by the host state.
The two sides are expected to issue a joint statement today, which will crystallize discussioins of their two-day ministerial talks. The South Korean delegation is also expected to pay a courtesy call on National Defense Commission Chairman Kim Jong-il today.

The 35-member South Korean delegation arrived here Tuesday for a three-day visit aimed at reaching agreements on a series of steps to alleviate military tension and promote economic cooperation.
Outstanding proposals by the South were, among others, the creation of a standing military channel between the rival states on the Korean peninsula and the establishment of institutional frameworks for inter-Korean economic cooperation, including agreements on protection of investment and avoidance of double taxation.
“The leaders of South and North Korea have already shared the view that a channel of communications should be established between military authorities to prevent accidental armed conflicts,” Park said in a keynote speech, reminding his counterpart of the June l3-l5 summit accord.
This Pyongyang meeting is a follow-up to the historic summit talks. During the first round of talks in Seoul July 29-3l, Park and Jon agreed to re-link the Seoul-Shinuiju railroad and resume operation of liaison offices at the truce village of Panmunjom.
Park also proposed that the defense ministers or working-level military officers hold talks to work out comprehensive steps to reduce tension. “During this round of talks, the two sides should negotiate the exchange of military information, the exchange of military officers, and cooperation in the process to clear landmines for the linking of the Seoul-Shinuiju railroad,” he said.
To facilitate the implementaition of the summit agreement, Park also stressed on the necessity of operating joint committees in each field, comprising military, economic and social affairs.
As for inter-Korean transportation, Minister Park proposed that the two Koreas build a new road between the South”s Munsan and the North”s Kaesong where the South”s Hyundai Group is set to build a large-scale industrial complex. “As the demand for traffic and transportation might increase in parallel with the stimulation of inter-Korean economic cooperation, it is economically necessary to reinforce the traffic network in advance,” he said.
In particular, he noted it is desirable to simultaneously organize the ground-breaking ceremonies for the linking of the Seoul-Shinuiju railroad and the constructions of a new road on the same day. At present, the two Koreas are set to hold a ceremony for the railroad connection in mid-September.