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U.S.-North Korean Relations An Analytic Compendium of and Regulations Laws Policies, U.S. - North Korean Relations: U.S. THE ATLANTIC COUNCIL OF THE UNITED STATES U.S.-North Korean Relations: An Analytic Compendium of U.S. Policies, Laws & Regulations Kenneth Katzman Occasional Paper March 2007 THE ATLANTIC COUNCIL OF THE UNITED STATES The Atlantic Council promotes constructive U.S. leadership and engagement in international affairs based on the central role of the Atlantic community in meeting the international challenges of the 21st century. The Council embodies a nonpartisan network of leaders who aim to bring ideas to power and to give power to ideas by: • stimulating dialogue and discussion about critical international issues with a view to enriching public debate and promoting consensus on appropriate responses in the Administration, the Congress, the corporate and nonprofit sectors, and the media in the United States and among leaders in Europe, Asia and the Americas; • conducting educational and exchange programs for successor generations of U.S. leaders so that they will come to value U.S. international engagement and have the knowledge and understanding necessary to develop effective policies. U.S.-North Korean Relations: An Analytic Compendium of U.S. Policies, Laws & Regulations Kenneth Katzman Occasional Paper March 2007 For further information about the Atlantic Council of the United States or its Program on Energy and the Environment, please call (202) 778-4942 Information on the Atlantic Council programs and publications is available on the Council’s website at http://www.acus.org Requests or comments may be sent to [email protected] THE ATLANTIC COUNCIL OF THE UNITED STATES 11th Floor, 1101 15th Street, N.W. Washington, DC 20005 Table ofof ContentsContents ForewordForward ..........................................................................................................................................IIIiii Overview...........................................................................................................................................v V U.S. Policies, Laws and Regulations Section 1: Policy and Diplomacy................................................................................... 1 Korean War Armistice Agreement......................................................................... 2 Joint Declaration on the Denuclearization of the Korean Peninsula ............. 18 Agreed Framework Between North Korea and the United States.................. 19 North Korea’s Moratorium on Missile Tests ..................................................... 22 Joint Statement on North Korea’s Nuclear Program........................................ 23 Resolution 1695 ...................................................................................................... 25 Resolution 1718 ...................................................................................................... 27 Nuclear Agreement ................................................................................................ 32 Section 2: Trade and Transaction Regulations and Restrictions ............................ 35 Trading with the Enemy Act ................................................................................ 36 Relaxation of Trade Ban........................................................................................ 38 Licensing of U.S. Exports of Dual Use Items to North Korea....................... 42 Financial Transactions With and Imports From North Korea ....................... 45 Financial Transactions Related to Travel to North Korea Permitted............. 52 Additional Exports Banned Pursuant to U.N. Resolution 1718 ..................... 53 30-Day Report on Efforts Toward Implementing UNSCR 1718............ 53 U.S. Luxury Items List .................................................................................... 58 Regulations to Implement the Ban on Luxury Goods Exports................ 59 Section 3: Terrorism and Proliferation Related Sanctions ...................................... 69 State Department Report on Terrorism for 2005: North Korea..................... 70 Export Administration Act ................................................................................... 71 Arms Export Control Act ..................................................................................... 82 Anti-Terrorism and Effective Death Penalty Act of 1996 ............................... 88 Determination of States on the “Not Cooperating” List ...............................102 Atomic Energy Act of 1954 and Energy Policy Act of 2005.........................103 Atomic Energy Act of 1954 .........................................................................103 Energy Policy Act of 2005............................................................................105 Iran-Syria Non-Proliferation Act .......................................................................107 P.L. 109-353 North Korea Nonproliferation Act of 2006 ......................114 Section 4: Other Foreign Assistance Sanctions ......................................................116 Foreign Assistance Act of 1961..........................................................................116 Prohibitions Against Furnishing Assistance to Communist Countries .116 Prohibitions on Assistance to Governments Supporting International Terrorism ........................................................................................................117 Withholding of United States Proportionate Share for Certain Programs of International Organizations.....................................................................119 Ban on Direct Assistance – Foreign Aid Appropriation for FY2006...........121 Section 5: Laws on Human Rights Practices and Illicit Activity ..........................123 Restrictions on Money Laundering....................................................................124 Finding on Macau-Based Banco Delta Asia .....................................................130 North Korea Human Rights Act of 2004.........................................................136 Sanctions Mandated by the International Religious Freedom Act of 1998 .148 Sanctions Mandated by the Trafficking Victims Protection Act of 2000 ....159 Prohibition on Use of North Korean Vessels..................................................175 Removing Restrictions on North Korea - U.S. Relations...........................................177 I. Lifting Restrictions on Trade, Aid, and Investment..................................................179 II. Removing Economic Sanctions Imposed by the “Terrorism List” ......................179 III. Providing U.S. Foreign Aid........................................................................................181 IV. Supporting International Lending.............................................................................182 V. Arms and Technology Sales ........................................................................................183 VI. Human Rights and Illicit Financial Activity Sanctions ..........................................184 VII. Facilitating People-to-People Contacts ..................................................................185 Index of Topics..............................................................................................................................187 III Foreword The United States has few foreign policy goals where the stakes are higher than its effort to end North Korea’s nuclear weapons program. The risks range from regional insecurity to the danger that Pyongyang could transfer nuclear weapons and materials to other rogue states or terrorist groups. Success requires diplomatic skill behind a consistent and focused approach. It is for that reason that Atlantic Council Senior Fellow Donald Gross assembled a distinguished working group to consider U.S. strategic goals regarding North Korea and steps to achieve them. The resulting report, which can be found at http://www.acus.org/070413_Framework_for_Peace_and_Security_in_Korea_and_Northeast_Asi a.pdf, calls for the U.S. to take a leadership role in creating a comprehensive peace settlement for the region that goes far beyond the critical denuclearization talks – involving arrangements ranging from an agreement to replace the 1953 armistice to a new Northeast Asian multilateral security organization. While the working group deliberated, Dr. Kenneth Katzman of the Congressional Research Service compiled and analyzed the 186-page compendium that follows on active U.S. legislation on North Korea that severely limits relations with that country. Should the U.S. government seek permanent peace arrangements, it must undo these policies and legal strictures accumulated over more than fifty years of this adversarial relationship. The Atlantic Council presents this compendium as a reference guide to accompany its working group report. Dr. Katzman compiled the compendium on behalf of the Atlantic Council with funding provided by the U.S. Institute of Peace. His analysis, intended to enhance study of the legislation herein, is his own and does not reflect the institutional position of his employer. This work continues a series of Atlantic Council studies since the early 1990s that analyze U.S. relations with “adversary states” and recommended measures for improving relations to achieve strategic U.S. policy goals. Three years ago, we released our report entitled “U.S.- Libyan Relations: Toward Cautious Reengagement,” accompanied by a compendium much like
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