Ministry of Unification | ADCA

[Jay]

To: RodriguezGuido@ADCA.org < Naio90 > CC: BaekJeonghee@mofa.kr.gov, MoonJaein@cheongwadae.gov, KimShinae@most.kr.gov, ParkSyeongil@moe.kr.gov BCC: RyuSooyoung@kr.gov, PyokChongmin@mu.kr.gov,

From: ParkHyunseon@mu.kr.giv

Subject: [Confidential] [Economic Development and Revitalization]

Security: Private and encrypted Protected by the NIS and MoFA DPB

Esteemed Executive Director,

I am reaching out on behalf of the Korean Government to invite the Argentine Development and Cooperation Agency to participate in an important national development program. The primary vision for this cooperation is pertaining to a confidential matter. In proceeding, the following document is highly confidential and remains private. In the trust shared between Argentina and Korea, the ROK Government hopes that a partnership can develop on international cooperation over this development project. We hope you will maintain the level of confidentiality and ensure that the contents of this discussion are kept private.

In the coming days, the Korean Reunification Treaty is expected to be signed and begin the formal accession of the North into the Republic of Korea. In anticipation of this process, the ROK seeks to prepare development plans to be implemented and begin immediately. Working on the economic development of North Korea to revitalize the North's economy is a crucial step. The ROK Government has conducted surveys and feasibility studies since March in cooperation with the North Korean Government during an exploration phase on Reunification. While North Korea is rich in minerals and natural resources such as coal, iron ore, limestone, magnesite, graphite, copper, zinc, lead, precious metals, hydropower, etc...The ROK Government seeks to not only tap into these resources, but look for petroleum offshore and expand existing uranium deposits.

The following data has been collected by the Korean Development Bank, Ministry of Unification, and North Korean Ministry of Interior. It is a map of known resources discovered and is based on data prior to the reunification treaty being signed. Once the treaty is signed, additional exploration efforts may be taken.

​

We hope an economic development plan can be created to help expand mine access in a safe manner. Allowing us to extract these resources for use in production of the industrial giants in the South. This process of course we hope can be done quickly and that the projects be built on existing infrastructure which has less safety standards. The main efforts will be to expand existing mines to be safe and allow wider extraction and the second to build new mines to extract minerals such as Cooper, gold and silver. We can confirm that the areas include 6 billion tons of magnesite, 2 billion tons of graphite, 5 billion tons of iron ore and 250 thousand tons of tungsten. Exploration for further rare earth elements such as lithium, erbium, thulium, cerium and samarium is a crucial area of development. We hope a development plan can be created to allow Korea and the ADCA to effectively develop the area and allow for a fueling of the ROK Economy with new natural resources.

​

The second area of economic development is the Seoul - Pyongyang High Way. The ROK Government hopes that a joint plan can be developed. As it stands, the Korean Government is prepared to complete the process, however, splitting the project with the ADCA would allow us to build the highway more efficiently and at less time. Building the Seoul Pyongyang High Way is a crucial step in allowing the movement of people, goods, and resources and would help boost the ROK Economy and create a bustling service industry in the North. The primary efforts are to raise local investment through developing infrastructure, and then allowing lower costs of production for corporations to reduce consumer costs and increase profitability on ventures in these regions. The second area highlighted on the map is the Kumgangsan route Wonsan that would be linked to a highway on the east side of the Peninsula. These two roads would be build in conjunction with an inter-Korean railroad.

​

The major infrastructure development project is the intra-Korean Railway System that would link the entire country together. Passing through major cities and connecting to existing railways between these regions with China and Russia. We hope that the ADCA can provide technical expertise as well as actual planning for the railway and assist in covering the development and building process. As a cost-saving method, we would like to begin installing high-tech communication cables alongside the new tracks to save cost and time. This would link the entire region into the same standard of internet access and development as the rest of Korea has. The high-speed intra-Korean railway would be beneficial to the Korean Economy and is a high priority for the Korean Government to accomplish as quickly and as efficiently as possible.

Aside from these main projects, we would appreciate the advise and development project proposals for other ways to develop healthcare and other infrastructure in the regions. We have a high level and number of technical expertise in both the North and rest of Korea, from nuclear engineers, railway supervisors, construction and urban planning, etc.. All advise and support is appreciated, and we hope that an outlined budget for each project can be provided and that the ROK Government is eager to cooperate with the ADCA. Infrastructure in the North while not the most modern exists. In many cases a number of advanced projects in major cities such as Pyongyang, Wonsan, Rason, and other major cities have been very remarkable. Building on this infrastructure would be a benefit and reduce the overall costs, while making everything connected and renovating existing infrastructure is equally crucial.

Our conditions for cooperation is that the labor force should be drawn from the North using both skilled and unskilled labor, and that the cooperation allow the ROK to use its corporations in conjunction with ADCA. Additionally we prefer all the tools, resources, and equipment be sourced from within the Korean Peninsula to ensure that the costs and output of input variables are beneficial. We also would like to begin petroleum exploration in the expanded Exclusive Economic Zone and hope that you could provide us experience you carry in this field as the majority of Korean Petroleum Exploration has been in the Middle East and in the South of the Peninsula, we hope that both our experiences can expedite this process.

Signed with sincerity,
Park Hyunseon
Minister of Unification
Ministry of Unification

---

Republic of Korea
Ministry of Unification
All information is protected from release by the Diplomatic Communications Security Act 1997
Authorized viewing is limited to those directly emailed, cc'd, and bcc'd​

 

[Naio90]

- Private -​ From: Guido Rodriguez, Executive Director, ADCA To: Park Hyunseon, Minister of Unification, Ministry of Unification, Republic of Korea

Minister Park, Thank you for your message. After the recent and very succesfull korean presidential visit to the Argentine Republic, we are eager to increase the argentine-korean collaboration through the Argentine Development and Cooperation Agency.​ Considering this, we received your proposals with open arms and can confirm you that the ADCA is willing to contribute with both technical know-how and expertise as well as with financial support to bring the infrastructure and industrial capacity of the former Democratic People's Republic of Korea up to contemporary standards and the level of productivity found in the southern part of the peninsula. In order to proceed with this plan, I would suggest the visit of an ADCA delegation, conformed by political and technical advisors, to Seoul and Korea in general to conduct a detailed study on the projects you mentioned, and to determine an aproximate cost, based on our own experience. This Delegation would be led by our Director for Asia-Pacific, Ms. Isabella Santos. Regarding this last subject, we would like to look into the possibility of acquiring office space in Seoul to open our regional office there. This would not only boost and make our bilateral cooperation more effiicent, but also help spread argentine help to neighbouring nations in a more straightforward way. Kind regards,​ Guido Rodriguez​ Executive Director​ Argentine Cooperation and Development Agency​

Jay

 

[Jay]

To: RodriguezGuido@ADCA.org < Naio90 > CC: BaekJeonghee@mofa.kr.gov, MoonJaein@cheongwadae.gov, KimShinae@most.kr.gov, ParkSyeongil@moe.kr.gov BCC: RyuSooyoung@kr.gov, PyokChongmin@mu.kr.gov,

From: ParkHyunseon@mu.kr.giv

Subject: [Confidential] [Economic Development and Revitalization]

Security: Private and encrypted Protected by the NIS and MoFA DPB

Esteemed Executive Director Rodriguez

We look forward to the cooperation between Korea and Argentina through the ADCA to achieve the successful implementation of the Korean Government's plan and vision to revitalize the unified Korean economy and society.

We look forward to the technical expertise and financial coordination to bring these infrastructure projects to present. The development and building on existing infrastructure in the North of the country is crucial. Equity and a dignified life is the only measurement of success we can use when it comes to raising the standards and levels of productivity in the North. We are ready to arrange the necessary protocols to receive the Ms. Santos and the ADCA delegation to look into depth the current proposals as well as develop the plans further. We are happy to bring the ADCA delegation to Pyongyang and other areas in the North to investigate and develop a plan based off of the on the ground report.

The Korean Government would be happy to host the ADCA regional headquarters in Asia, including the necessary arrangements pertaining to the rights and responsibilities of the facilities, designation of the premise and its personnel, and how to handle the costs and supporting mechanisms for the success and growth of the ADCA mission. Not only to assist Korea, but, will help in the development of further efforts across Asia.

Signed with sincerity,
Park Hyunseon
Minister of Unification
Ministry of Unification

---

Republic of Korea
Ministry of Foreign Affairs
All information is protected from release by the Diplomatic Communications Security Act 1997
Authorized viewing is limited to those directly emailed, cc'd, and bcc'd​

 

[Naio90]

having received the last mesasge, the ADCA borad would order the preparation of the official Delegation, led by Ms. Santos, to travel to the Republic of Korea.

She would be accompanied by technical personnel, specialized in transportation and mining infrastructure and operations. 2 official translators would also be part of the group and once in korea, they would be accompanied by a representative of the argentine Embassy in Seoul.

The team would travel on a commercial flight, informing the korean Ministry of Unification of their itinerary and place where they would be staying (they booked a nicely located hotel to use as temporary base of operations). The team would also bring preliminary drafts for projects, based on the information given by the koreans over message.

They woudl arrive without incident, rest the jet-lag off and request a formal meeting to start working on the projects with the korean representatives from the Ministry of Unification.

Jay

 

[Jay]

​

The ADCA delegation would arrive in Seoul in the morning. The nearly 27 hour flight, the delegation would surely be tired. The delegation would arrive at Incheon Int'l Airport, where they would be able to depart the plane according to their airlines rules. Outside the connector-gate, where the Korean Deputy Chief of Protocol at the Ministry of Foreign Affairs Han Yeojin was waiting for them. The Protocol Officer and several ministerial officials welcomed the delegation. The delegation would follow the diplomatic section of the airport lines as they passed through security and their bags checked through. The delegation would be driven by the Korean Government to their hotel, with no active security threat aimed against the delegation, they would be mostly entrusted into the care of the Ministry Drivers who would take the delegation around Seoul in their free time and to and back from the meeting rooms. The schedule for that afternoon would be cleared so that the delegation could rest and let some explore the city. The meeting was set for the following day in the morning.

The Korean Minister of Unification would arrive from Pyongyang the night after the ADCA arrived in Seoul. The Minister had wrapped up a meeting on a final timeline towards the transition for local elections, additionally, she had met with governors to set out local policies appropriate for each region. The Minister was getting no breaks and she would arrive late in the night, getting ready for the ADCA meeting with other ministries. The Minister would have a formal meeting room set up in the Ministry of Unification. The Korean Flag would be next to the Unified Korean Flag while the Argentinian flag would have the ADCA flag next to it. In the morning, the Korean Government would provide drivers to bring the delegation to the Unification Ministry.

Security was relatively high at the Ministry. Members of the Seoul Metropolitan Police Agency were deployed in advance of the meeting. Men and women from the Diplomatic Security Bureau were dressed in formal attire, spread out across the premise, while uniformed police in tactical gear were stationed at different entry and exit points.

Upon arrival to the Ministry, the Director and her delegation would be welcomed to the Ministry and would be greeted by the Vice Minister of Unification. After their short greeting, the delegation would enter a room with conference hall table allowing both delegations to sit face to face. The Korean Minister of Land, Infrastructure, and Transportation, Minister of Agriculture, Food and Rural Affairs, Minister of Health and Welfare, Minister of Environment, and the Vice Minister(s) of Foreign Affairs and National Defense. The larger ministerial presence was supported by a number of staffers sitting behind their ministers for the technical planning, while the Ministers were equally aware in overall issues. The Korean Development Bank and Korea International Cooperation Agency officials were present as well. Once everyone was settled down, Minister Park would welcome the delegation.

"Welcome to the Republic of Korea Director Santos. The Minister said as, slightly tipping her head downwards in recognition of the Director. "It is a pleasure to meet you and we are glad to welcome you in Seoul. We appreciate your personal visit and we hope to discuss in depth the proposals and budgeting for our plans in the North. As partners, we hope that we can continue to have a frank and open dialogue and work in our mutual interests. Alongside the discussions of Korea, I hope that on the sidelines of these meetings the KDB and KOICA can discuss cooperation on ongoing efforts to develop the wider Asian-Pacific community."

Naio90

 

[Naio90]

With the argentine delegation taking their seats and after hearing the warm welcoming words from the Minister, Director Santos would adress the group.

"Minister, thank you for the kind words. On behalf of my colleagues and the Government of Argentina, let me say that it is a pleasure to be working closely with your Government in such a noble task. This ambitious speak highly of the values and vision of your nations leadership. We look forward to this first wave of projects, to be the ground work for many more to come.

Now, shall we begin with the planned mining operations in the north? It is our belief that the development of industrial and extraction "nodes" and the subsequent creation of jobs are the basal stone of any major nation or region wide project. Further projects, such as transportation and processing are chains that bind everything together, but the construction and expansion of the industry remains the most important step.

From the Documentation you provided, and our own studies, we would say that the former North Korea is actually very rich in metal resources, with values in excess of US$6 trillion. Among the biggest deposits, in terms of gross tonnage, we would be talking of gold, zinc, copper and iron ore. Other rare-earth resources look also very promising, but would be given more attention in a second phase, in order to allow the mining operations of larger deposits to be developed first, and therefore quickly create a thriving extraction industry, creating low-skill jobs for the local workforce, which can acquire experience and proficiency in order to be promoted to more technical tasks later on. But most important, it will allow for money to start flowing among that sector of the population, provoking the growth of the economy by also incentivizing the creation of business such as restaurants, bars and small shops to service the new workforce. If people have money to spend, they will also need places to do that, and what best than keeping the money in the same local area.

Some potential key projects would be the modernization and technification of the Komdok Zinc mine, to improve the yield, efficacy and quality of work for the workforce employed there, the Sangnong gold mine, with a plan to increase the secondary output of pyrite, chalcopyrite, magnesite, native gold, and native silver, the Hyesan copper mine should be rebuild and reopened after the 1994 flooding. Copper is a highly demanded metal nowadays, due to their importance in electronics. Finally, the Musan iron ore extraction operation should definitely be expanded in order to supply a new series of steel mills that be propose to be constructed. Iron is the key to a nations industrialization, and the korean north has a lot to catch up."

Jay

 

[Jay]

"Thank you Director Santos, your overview was most helpful and shows us the ADCA's strong technical background over these areas. From our current on-site management, we've determined a number of facilities such as the mines you detailed are operational and others in need of repair and expansion. This of course would cover one aspect of the portfolio. Being able to move the economy of the Korean North from a manufacturing/industrial economy to one of services, real-estate, high-paying jobs, and so forth means we not focus our budget exclusively on mining and exporting-oriented mineral economy. With a large reserve, being able to tap into these minerals can fuel the economy and development much more rapidly. At least from our macro-perspective, the current plan you've laid fits into the proposals we were hoping to facilitate and finance.

At this stage, while we have longer visions for the northern region, what you said is accurate in how to move to that longer vision. Existing technical universities and communities prove resourceful in training and offering quality labor and supervisors from the region. Additionally, this development would be complementary to the economy in the south of the country, as electronics, automobiles, and semi-conductors our top exports can be sourced locally. I would also love to hear the plans on how we can implement the inter-Korean highway and railroad system. We've discussed using the construction phase as an opportunity to install high-tech internet cables in the country and get it integrated into the global environment and provide more remote services and support"

Naio90

 

[Naio90]

"In our experience, in order to have a successful transition from a primary extractionist/commodity exporting economy, towards a more service-oriented, its is key to have a population with enough education and skill to have a pool of laborers efficient for those kind of companies to feed from. We would suggest working closely with your Minsitry of Education in a massive public education program, both for social and scientific studies as well as for more technical positions, arts and crafts. We understand that due to the geopolitical circumstances reigning in the former north korean territory until recently, the population lacks proper training and is mostly focused on agricultural tasks. And a low-tech one.

We concur with your assesment regarding telecommunication. The free flow of information is very important for any modern society, and an easy access will also ease up the work of education the population by giving them access to the internet and its vast archives of information. Giving the younger generations access to this technology will also help integrate them into the skilled labor market, and eventually make it easier to be absorbed by the significant tech-industry from the South."

Jay

 

[Jay]

"Our records detail that the current literacy rate in Northern parts of the country is 98-100% this is limited to Hangeul the Korean language. While there are numbers of people fluent and proficient in Mandarin Chinese, English, and another of other languages. There are a number of universities in major cities and lowering the barriers of travel, we hope will increase the number of students attending higher education. The current humanitarian missions have used the widespread offices by the political bureaus of the communist regime and the education facilities to distribute aid and provide regular feeding and nourishment to children.

However, your assessment is correct that the majority of the population is in the agricultural business. That, as well as the armed forces. There is a high level of technical skills pertaining to specialized roles, still, the vast majority of the population is in the agricultural or menial labor tasks. As per the telecommunication upgrades, the infrastructure in Pyongyang is sophisticated. However, it is limited in capacity. Other major cities and towns to our current knowledge do not have any form of modern telecommunications. The Korean Government offers services online that are completely free. This is mainly educational assistance through ebs.kr and other online services. Being able to bring the youth up into the environment of the South will only speed up the transition phase and also help improve the family unit downwards upwards."

Naio90

 

[Naio90]

"Well... having been through all this, I think we could present you some first proposals. Considering what we discussed, providing a quicker and more cost-efficient access to the main mining areas would mean an improved mineral yield and also a more competitive export prices, aside from making your inudstry and processing plants more effective as well, reducing therefore the price of processed minerals both for national industry requirements as well as for the international market.

An aide would give the ADCA Regional Manager a folder filled with technical details, maps and diagrams, while another would distribute copies of it in english to the rest of the people in the meeting.

PROJECT K-1
TRANS KOREAN RAILWAY NETWORK

Presented by the Argentine Cooperation and Development Agency
​

SUMMARY:​

As a consequence of the recent reunification of the korean peninsula, a great disparity exist between the level of public infrastruture available in the former norther territory, in regard to the former "south". This transpoles also to the economic and industrial output, with the former DPRK presenting a high potential for improvement by the incorporation of new technologies and expansion of the existing transport infrastructure.​

​

The mining areas, one of the former DPRK economic cores, have been single out as a priority to be developed and brought to pair with contemporary national and international production standards. As such, together with the integration of these new methods and technologies, it is necesary to provide a more efficient and direct method to transport the extracted minerals to the corresponding processing centers and ports.​

​

The railway has been know to be a very cost-effective method of transportation for commercial and industrial goods, and based on the pre-existing infrastructure, the present Document lays out a proposed revision, expansion and modernization of the railway network of the former People's Democratic Republic of Korea.​

​

The focus would be primarely be set on regular-speed lines, that can easily be used on dual passenger-goods transport routes.​

​

MAMPO LINE​

Pyongyang - Pyongsong - Kaechon - Jonchon - Kanggye - Manpo​

Total lenght: 300.1km​

Estimated cost: 1.9bn USD​

Timeframe: 8 months​

​

This proposed line will use preexisting infrastructure as base to increase the capacity by incoporating additional tracks along the entire route, repair and expansion of supporting infrastructure such as platforms, bridges, tunnels, overpasses and stations along it, the modernization of signalization and the inclusion of modern methos of communication for a more efficient and safe operation of the trains on said tracks.​

​

Passenger and freight stations will be expanded on all six major locations of the route, boosting transport of passengers and cargo. Minor stations would also be modernized or constructed along the trail and junctions created to better serve the improtant mining territory located between the province of South Pyongan and South Hamgyong, in the central area of the former DPRK. This are is located south-east of the Mampo Line, and will be served by secondary tracks, mostly for the transport of goods.​

​

GANGWONG LINE​

Pyongsong - Kowon - Wonsan​

Total lenght: 145km​

Estimated cost: 0.9bn USD​

Timeframe: 5 months​

​

This proposed line will connect the western and the eastern coast of the peninsula, facilitating the movement of passengers and freight between both shores and industrial areas. The existing ifnrastructure would be used as a base to work on, modernizing, repairing and expanding the existing constructions and implemting new technologies.​

​

This woudl include also new stations and loading areas for mining resources.​

​

NORTHEASTERN LINE​

Kowon - Chongjin Line​

Total lenght: 784km​

Estimated cost: 4.7bn USD​

Timeframe: 12 months​

​

This proposed line will connect all the eastern coastline of the former DPRK with a modern railway network, allowing for swift and efficient movement of goods and passengers. A ling into the PRC and the Russian Federation in the near future would add increased demand for this route, and facilitate international commerce for the Republic of Korea.​

​

This line will be the msot expensive of the three presented due to its lenght and lack of acceptable pre-existing infrastructure to work on. most the the construction would need to be created from scratch using local work force. This will include the preparation of the terrain for a dual-track lane, laying of railways, cosntruction of bridges, tunnels, platforms, stations, support stations, maintenance and communications infrastructure and finally passenger and freight stations on all major urban centers and productive nodes.​

​

This line will also serve as transportation link for the mining operations in the area located around the triple border of the South Hamgyong, Yanggang and North Hamgyong. This important extraction sites will be served by secondary networks destined mainly for freight trains and daily mining operations. This branches will connect the mining areas with the main processing areas and commercial ports.​

​

Jay​

 

[Jay]

Minister Park would receive the folder and its content as her staff explained some portions to her. The other ministers would also review the proposal and took some notes on a notebook next to them. After reading through all the proposals Minister Park would speak.

"Thank you director for the proposals. We think that they are all acceptable and believe that they are encompassing of most of our visions. With regards to the railway projects, would it be possible to incorporate adding cables for internet and communication in the lines?" Second, would it be possible to use high-speed trains on these railways. All of our trains are designed for high speed travel from the KTX-I and KTX-II as well as HSR. Aside from that In terms of financing, we would like to know the total price for the package on the infrastructure proposals. Including the fees and associated costs. Finally, what exactly is the preferred payment scheme for your agency?"

Naio90

 

[Naio90]

"High speed passenger trains require additional infrastructure and a special set of tracks and layout, which in most cases cannot be used for cargo transports. Considering the geographic are on which we would be building, perhaps it wouold be recommendable to start with regular-speed tracks and trains suitable for dual use, specially considering the necessity to quickly bring the norther economy up to par with the south. Also, I understand that the socio-economic situation of the north would not really make it profitable to have a high-speed train at this point, since most of that population couldn't affor it unless it was heavily subsidized by the State, and even so, there is not much incentive for them to use it intensively.

We can however discuss a second stage, which would include the construction of specific hihg-speed tracks along the already existing lines, connecting major norther urban centers.

Finally, yes, it is possible to use the projected construction efforts to also work on the improvement of internet and general communications line along the new or upgraded train lines."

Jay

 

[Jay]

"Thank you for the clarifications. We do believe that dual-use if far more efficient in terms of transit of people and goods while we are still in the developmental phase and transitory economic development. We leave the wisdom of this to you of course. Thank you for the clarities. We would like to see regardless plans for at the upgrades for high speed rail lines after the completion of the current proposals. That said, we are supportive of the current plan of action with the inclusion of communication lines and internet cables which we can supply through our corporations here in Korea."

Naio90

 

[Naio90]

"We understand that the Republic of Korea has a good deal of expertise in the area of producing high-speed trains adn relate rolling stock through Hyundai Rotem. perhaps we could discuss a potential partnership between both organizations to yield better results.

As for the presented Project K-1, if your Government approves, we could begin looking into the launch of the project and talk about the financing of it. We can offer an installment plan, so that the economic burden is not to heavy straightaway and we can get going quickly."

Jay

 

[Jay]

"I would be happy to put you into contact with Hyundai Heavy Industries who operate as a subsidiary of our Hyundai Conglomerate. Alongside these projects, they would be happy to be a supplier of the ADCA on future projects across the globe in providing high-quality service rails. We would be happy to pay for the Mampo Line and Gangwong line in full, and then discuss the Northeastern Line in installments. The primary issue were facing now is financial capital, while we have a stable reserve of $9 billion, we are facing a nearly $10 billion in repayment of loans to Sparrow Industries alongside a currently multi-billion dollar security and disarmament operation across the region. We are currently in talks to discuss applying for financial grants from global aid agencies considering the current funds are being directed to development and aid. However, our overall budget is aimed at $20 billion. Regardless, we would like to pay for the initial programs and use installments for the remaining programs. Planting this tree will make sure our children have shade from the sun, even if means we get a little sunburnt in the meanwhile."

Naio90

 

[Naio90]

"Well, since the projects will demand a good amount of time, it would be possible for ADCA to cover the minimal required costs for the first few months, and then, once your Government has cleared up your pending payments for other projects and dependencies, wire the total amount for the Mampo and Gangwong Line directly to ADCA. This way we can start as soon as possible and your finances will not get compromised."

Jay

 

[Jay]

"We'd like to proceed with financing the projects through a financial loan through ADCA. We hope that an appropriate repayment scheme can be arrange. Proceeding with all projects, the total cost to my understanding will come out to 7.5 billion. If Argentina would be able to cover these initial costs, we can repay you over the course of five - twelve months. With the initial loan to cover the minimal costs, we'd provide the total amount over the five to twelve month period. If your banks are uncertain on repayment, we can discuss a share of the infrastructure to be given to the respective banks for recovery of investment through fees, advertisements, and concessions inside terminals as collateral. I understand some banks may feel a little shaky investing in Asia after the European Financial Crisis. Primarily, at this point we are limited in what we can finance. If it is okay with you to, to cover the minimal costs and then we repay those costs over the project timeline, it'd be helpful to us. Since the conversation began, our economic situation has become quite precarious with fiscal allocations."

Naio90

 

[Naio90]

"We are not investing in Asia, we are investing in a friend and partner of the Argentine Republic. You can count on the ADCA's financial support to carry out this essential project. If it is convenient to your financies, we can gladly accept a 12 month repayment plant. We will start construction of all three lines, with a total cost of 7.5bn USD, using the ADCA's resources to cover everything, and propose you to pay 12 monthly installments of 625,000,000.00 USD. WOuld you also perhaps be interested in postponing the first payment for 3 or 4 months? This may give you more time to have your numbers settled.

I understand the whole reunification process must be putting a lot of stress on your nations finances..."

Jay

 

[Jay]

"Thank you for your support and assistance. We are glad to be taken as friends and partners to your government and recipients of your generosity and kindness. We would like to proceed with a 12 month repayment plan. Alongside a three month postponement. We expect that by beginning of 1999 we will be clear of the debt-related repayments, however, we will most likely returning to paying our remaining loan to foreign lenders at that period. These would be generous terms...as you said, the reunification process is extremely draining in terms of our financial assets at times. However, it is a small term cost for the betterment of our people."

Naio90

 

[Naio90]

"Excellent then. We will start the works on the three projects immediatly, with ADCA covering the total costs initially for three months, after which the Republic of korea would start paying the total cost with an installment plan, which would look something like this:

DEVELOPMENT AND CONSTRUCTION CONTRACT
BETWEEN THE
ARGENTINE DEVELOPMENT AND COOPERATION AGENCY
AND THE
REPUBLIC OF KOREA​

The Argentine Development and Cooperation Agency - ADCA - and the Republic of korea, hereinafter known as "The Parties";

Agree as follows:

1. The ADCA will plan, design and develop, jointly with the by the Government of the Republic of Korea designated institutions, the modernization and expansion of the railroad network connecting the territory formerly known as the "Democratic People's Republic of Korea", consisting primarily of the lines: MAMPO, GANGOWNG and NORTHEASTERN.

2. Details on each of this lines are included in ANNEX I.

3. The construction of all three lines will take up to twelve (12) months, being their development indepently from each other, meaning that certain lines might be ready and operational before others.

4. The espitulated cost of of the project will be of 7,500,000,000.00 USD, which will be financed by the ADCA according to the aprameters describen on article 5.

5. The total cost of 7,500,000,000.00 shall eb repaid by the Republic of Korea directly to the ADCA through 12 monthly installments of 625,000,000.00 USD, being the first installment due APRIL 1999, and the last MARCH 2000.

6. The present contract is binding, but may be modified with the consent and agreement between the involved Parties.


ANNEX I:
PROJECT K-1
TRANS KOREAN RAILWAY NETWORK


For the ADCA: ________________________
For the Republic of Korea: _______________

Jay