THE KOREAN CONUNDRUM America’s Troubled Relations with North and South Korea ALSO BY TED GALEN CARPENTER Peace and Freedom: Foreign Policy for a Constitutional Republic The Captive Press: Foreign Policy Crises and the First Amendment Beyond NATO: Staying out of Europe’s Wars A Search for Enemies: America’s Alliances after the Cold War Bad Neighbor Policy: Washington’s Futile War on Drugs in Latin America ALSO BY DOUG BANDOW Tripwire: Korea and U.S. Foreign Policy in a Changed World The Politics of Envy: Statism as Theology Human Resources and Defense Manpower Beyond Good Intentions: A Biblical View of Politics Edited by Doug Bandow and Ted Galen Carpenter The U.S.-South Korean Alliance: Time for a Change THE KOREAN CONUNDRUM America’s Troubled Relations with North and South Korea Ted Galen Carpenter and Doug Bandow THEKOREANCONUNDRUM Copyright © Ted Galen Carpenter and Doug Bandow, 2004. All rights reserved. No part of this book may be used or reproduced in any manner whatsoever without written permission except in the case of brief quotations embodied in critical articles or reviews. First published 2004 by PALGRAVE MACMILLAN™ 175 Fifth Avenue, New York, N.Y. 10010 and Houndmills, Basingstoke, Hampshire, England RG21 6XS. Companies and representatives throughout the world. PALGRAVE MACMILLAN is the global academic imprint of the Palgrave Macmillan division of St. Martin’s Press, LLC and of Palgrave Macmillan Ltd. Macmillan® is a registered trademark in the United States, United Kingdom and other countries. Palgrave is a registered trademark in the European Union and other countries. ISBN 1-4039-6545-5 hardback Library of Congress Cataloging-in-Publication Data Carpenter, Ted Galen. The Korean conundrum : America’s troubled relations with North and South Korea / Ted Galen Carpenter and Doug Bandow. p. cm. Includes bibliographical references and index. ISBN 1-4039-6545-5 1. Nuclear weapons—Korea (North) 2. Korea—Military relations—United States. 3. United States—Military relations—Korea. 4. United States—Military policy. I. Bandow, Doug. II. Title. UA853.K5C37 2004 355’.031’097309519—dc22 2004043460 A catalogue record for this book is available from the British Library. Design by Letra Libre, Inc. First edition: December 2004. 10 9 8 7 6 5 4 3 2 1 Printed in the United States of America CONTENTS Acknowledgments vi Introduction 1 1. Growing Tensions with Both North and South Korea 9 2. The North Korean Nuclear Crisis: Then and Now 39 3. Options for Dealing with North Korea 71 4. South Korea as a Security Free-Rider 101 5. Time for an Amicable Divorce 123 6. Forging a New U.S. Strategy in East Asia 145 Notes 167 Index 211 ACKNOWLEDGMENTS Weowe a debt of gratitude to numerous people for helping to make this book possible. Edward H. Crane, president of the Cato Institute, has provided sus- tained and enthusiastic backing for this project and so many other aspects of the Institute’s foreign policy program for more than two decades. The same can be said of William Niskanen and David Boaz, respectively the chairman and executive vice president of the Institute. Our appreciation goes out as well to Michael Flamini and Anthony Wahl, our project editors at Palgrave Macmillan. Alan Bradshaw and Amanda John- son at Palgrave provided significant help keeping the production process on track. Key members of the Cato Institute staff, most notably Justin Logan, Feliz Ventura, and Joshua Dunn, were invaluable in helping to prepare the manuscript for publication. Martha Sencindiver did her usual fine job with the index. Most of all, we want to thank our families for the emotional support they gave us throughout this project. I N T R O D U C T I O N Perhaps unique among America’s security commitments, the guarantee for the Republic of Korea (ROK) arose from inadvertence. As the victor in a bitter struggle with Japan during World War II, Washington was left to dispose of the detritus of the Japanese empire. Korea, a once-independent kingdom for- mally seized as a colony by Tokyo in 1910, was divided between the United States and Soviet Union. The Cold War quickly froze the temporary adminis- trative division into a permanent border between two hostile states. Although there was much to criticize in U.S. policy before North Korea’s 1950 invasion of South Korea, the most likely alternative to division of the peninsula would have been a unified communist state. If that had happened, nearly 70 million Koreans today would be living in an impoverished tyranny. And the ability of what we now call the “North” to commit mischief and even mayhem would be magnified dramatically. Unfortunately, the price of preventing reunification on Kim Il-sung’s terms was the three-year Korean War. The conflict changed little on the penin- sula other than wreaking horrendous death and destruction, but it put Amer- ica and China at war with one another and deepened the dependence of both Koreas on their respective allies—China and the Soviet Union, in the case of the North, and the United States for the Republic of Korea. A half century later the Democratic People’s Republic of Korea (DPRK) remains frozen in time, a Stalinist monument to totalitarianism and collectivism, enshrouded in probably the most pervasive, and certainly the most persistent, personality cult in modern history. Unfortunately, the U.S.–ROK alliance also seems to be frozen in time. America continues to guarantee the security of the South, as if the latter re- mained an impoverished dwarf facing an imposing regional communist al- liance and the Cold War continued to rage, with a geopolitical “loss” anywhere on the globe weakening the United States in its life-and-death struggle against 2 THE KOREAN CONUNDRUM the Soviet Union. American officials plan military force modernization pro- grams; analysts worry about “who” will defend Seoul; every member of the American security establishment proclaims the need to preserve Washington’s military presence. Yet anyone whose academic, military, or political career is not tied to the U.S.–South Korean status quo must wonder at the world in which these dis- cussions are occurring. Beyond Pyongyang one sees economic globalization, advancing democracy, and American dominance. North Korea’s fulminations continue unabated, but the DPRK has lost its allies and has been surpassed by the ROK in every measure of power other than military force. South Korea, with the world’s twelfth largest economy, is an increasing global presence, while the impoverished North matters not. Except. Except for the fact that North Korea has embarked on the devel- opment of nuclear weapons. Although it is possible that the North is engaged in one of the grandest bluffs of all time, it would be foolish to assume that Pyongyang is not deadly serious in its intention to acquire atomic weapons and in its development ef- forts. Whether the DPRK possesses as few as two or as many as six weapons (common estimates when in the spring of 2003 it began reprocessing nuclear fuel that had been stored as part of the 1994 Agreed Framework), the ongo- ing reprocessing effort could yield several more. And operation of its nuclear reactor could generate enough plutonium for North Korea to develop a small but significant arsenal over time—and, even more ominously, to open a fully stocked Nukes ’R Us on the side. The North’s nuclear ambitions have stirred tension and fear throughout the region. Ironically, if Washington did not deploy troops in the South and had not effectively smothered allied defense efforts in the past, America’s in- volvement would be only tangential. Obviously, nuclear weapons in the hands of North Korea would primarily threaten its neighbors, not distant America. And the potential terrorist threat wasn’t even a gleam in most policymakers’ eyes more than a decade ago, when the “crisis” first erupted. But everyone now looks to the United States for answers—while criticiz- ing Washington for its policies. Dealing with the North would never have been easy, but the process is made more difficult by two factors. First, Pyong- yang offers an opaque foreign window through which American policymakers must peer. The North may be brandishing its nuclear option as a means to gain respect and attention, and, in turn, bribes in the form of aid, trade, secu- rity guarantees, and diplomatic recognition. It may be talking about negotia- tion to disguise its determination to build a nuclear arsenal. Or it may be 3 INTRODUCTION holding its options open, undecided about its ultimate course. There is no way to be certain about Pyongyang’s motives or intentions. Second, the United States and its allies have created the worst possible ne- gotiating dynamic. The North learned long ago that no positive steps would be forthcoming voluntarily from America, Japan, or South Korea; even after China and the Soviet Union recognized the ROK, the United States, in par- ticular, evinced little interest in forming any relationship with the North. But when Pyongyang started discussing its nuclear plans, near panic ensued in Seoul, Tokyo, and Washington. The DPRK was recognized and accommo- dated. Little changed in the decade after Washington inked the Agreed Frame- work. North Korea may have decided to cheat from day 1, but even if so, America’s failure to follow through with its commitments under the 1994 agreement gave the DPRK ample excuse to cheat. And Pyongyang could be forgiven for believing that future improvements in its relations with the United States and Japan, if not with the ROK, required returning to the pol- itics of confrontation. Responding to the North’s challenge has grown more complex with the di- vergence in views between Seoul and Washington. The South Korean shift from the hard-line policy of Kim Young-sam to the “sunshine policy” of Kim Dae-jung caused little angst in the Clinton administration, but clashed sharply with President George W. Bush’s characterization of the DPRK as a member of the “axis of evil.” The split obviously impeded coordination between the two capitals; it also helped feed growing antagonism toward the United States. Indeed, anti-American feeling helped propel Roh Moo-hyun into Korea’s Blue House in December 2002. Although he subsequently backpedaled feverishly, proclaiming his fealty to the U.S.–ROK alliance, even many hawkish Ameri- can policymakers were appalled at the rhetorical and sometimes physical at- tacks on American soldiers and suggested that if the South Koreans did not want us, maybe it was time to go. The two countries worked hard to patch up their relationship, but pro- posed solutions, such as moving Yongsan base out of downtown Seoul, were mere Band-Aids. The two nations have grown apart: they perceive the threat from the North differently, advance very different responses to the DPRK’s nuclear threats, and foresee a significantly different future relationship. In- deed, the latter conflict of visions almost ensures a not-too-distant alliance crack-up. Today many South Koreans see little threat from the North. And while some ROK policymakers hope American forces will remain even after reunifi- cation as a deterrent to China or Japan, they evince no interest in aiding the
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