SKorea OKs NKorea Nuke Plant Funds

["Sandy Perle" <sandyfl@earthlink.net>]

Thursday August 12 7:09 AM ET 

SKorea OKs NKorea Nuke Plant Funds

SEOUL, South Korea (AP) - South Korea's parliament today approved 
$3.2 billion for two nuclear power plants for North Korea, despite 
fears that its northern rival is planning to test-fire a missile.  

The government-proposed bill passed the single-chamber National 
Assembly without any objection from the opposition.

In the weeks before the vote, government officials stressed the 
importance of keeping the $4.6 billion reactor project alive despite 
the Stalinist state's reported preparations to launch a long-range 
ballistic missile.  

In a 1994 accord with Washington, North Korea agreed to freeze and 
eventually dismantle its suspected nuclear weapons program in 
exchange for two light-water nuclear power plants and 500,000 tons of 
fuel oil annually until the reactors are completed in 2003.  

The Western-developed reactors will replace the North's Soviet-
developed reactors, which experts say produce greater amounts of 
weapons-grade plutonium.  

An international consortium, led by the United States, Japan and 
South Korea, is financing the reactor project.

South Korea would cover 70 percent of the cost, or $3.2 billion, 
Japan would pay $1 billion and the European Union would provide about 
$88 million.  

However, Japan has threatened to halt funding if North Korea fires 
the missile, which military experts say is capable of reaching Alaska 
or Hawaii. Last year, North Korea alarmed Tokyo by firing a rocket 
over Japan.  

The United States, South Korea and Japan have warned of economic and 
diplomatic penalties if North Korea, which relies heavily on outside 
aid, goes ahead with the test.  

Construction on the power plants began in August 1997 in Kumho, a 
village on North Korea's northeastern coast.

North Korea will be required to repay the project's costs over 20 
years after a three-year grace period once the plants are completed. 
No interest will be charged.  

South Korea plans to raise electricity rates to pay its share of the 
cost.

Sandy Perle
E-Mail: sandyfl@earthlink.net 
Personal Website: http://www.geocities.com/capecanaveral/1205

"The object of opening the mind, as of opening 
the mouth, is to close it again on something solid"
              - G. K. Chesterton -
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