Internal Affairs

o North Korea held a report session at the People's Palace of Culture on August 25 to mark the 50th anniversary of the late president Kim Il-sung's visit to the mausoleum of the ancient Goguryeo dynasty's founder King Dongmyeong. It also tried to highlight the "historical legitimacy" of the Pyongyang regime through various media outlets. During the process was focus on Kim Jong-il rather than on his father for strengthening internal unity of the regime.

o On the occasion of the 12th anniversary of Youth Day (August 28), North Korea called on young adults to stand in the vanguard of tightening the regime's unity and overcoming economic difficulties, along with allegiance to Kim Jong-il. It made the call through a Rodong Sinmun editorial marking the occasion and other media outlets, as well as a variety of events commemorating the day.

o In an apparent bid to stir sympathy and to solicit assistance from the international community, North Korea's Anti-flood Measures Committee announced on August 25 that torrential rains August 22-23 had inflicted serious damage on the plain of the nation's southwestern region.

o North Korea held a nationwide education program exhibition August 19-22 in Pyongyang, where various scientific and technological competitions were held highlighting possible software applications to industrial production. The event showed Pyongyang's aspirations for an economic takeoff through the development of the IT industry.

o North Korea reported August 16 that a "Business Dictionary" was compiled by the commerce ministry's Institute of Commerce after a year's work. The compilation was seen as part of an effort to adapt to the sudden economic change following its July 1 (2002) Economic Management Improvement Measures.

o North Korea said on August 24 that during the total mobilization period for "springtime nationwide land management" (March through April), many achievements were made, including the construction of 188 kilometers of road and the planting of 583 million saplings. The report was apparently intended to encourage the nation to attain targets set for this year as the 55th anniversary of the founding of its regime approaches on September 9.

Relations with South Korea

o The sixth Inter-Korean Economic Cooperation Promotion Committee meeting held in Seoul August 26-28 adopted a nine-point agreement, including the schedule for trans-border railway and road connections, revitalizing of Mt. Geumgang tourism, and the on-site inspection of food distribution, which was donated to the North.

- In particular, the two sides agreed on the expansion of direct trade. In this connection, they also agreed to take practical steps, including the setting up of a consultation channel, at an early date, a move which will contribute to revitalizing trade.

o North Korea strongly condemned conservative rightwing organizations in South Korea for the anti-North Korean demonstrations August 24 and 26 during the Daegu Universiade and demanded an apology from the authorities as well as prevention of similar incidents. The condemnation and demand were made by the leader of the North Korean contingent to the Universiade in a press conference August 24 and 26 and by the secretariat of North Korea's Committee for Peaceful Unification of the Fatherland August 24..

- In connection with the incidents, the chairman of the Daegu Universiade organizing committee expressed regrets on August 25. In response, the leader of the North Korean delegation said two days later that North Korea would continue to participate in the remaining sports competitions.

o Through a Rodong Sinmun comment on August 25, North Korea denounced the trial on August 18 of those accused by special prosecutors of illegal remittance to Pyongyang. North Korea argued that the South Korean authorities were "trying to thwart the implementation of the June 15, 2000, South-North Joint Declaration and set the inter-Korean relationship on a confrontational course."

External Relations

o In a keynote speech during the six-nation talks in Beijing (August 27-29) on its nuclear issue, North Korea proposed four points. They are: denuclearization of the Korean peninsula, rather than possession of nuclear weapons, shift of America's hostile policies toward North Korea as an essential condition for the resolution of the nuclear issue, nuclear deterrent as a legitimate means for the defense of its sovereignty, and conclusion of a non-aggression treaty with the United States. With this proposal, it also suggested a package deal and a "simultaneous action" principle.

o North Korea's ferry the Mangyeongbong No. 92 entered Japan's Niigata port August 25 after a seven-month absence. The entry was seen as intended to procure goods from Japan and to return officials of the pro-Pyongyang Korean residents' association to Japan before North Korea's founding anniversary of September 9th.

Japan issued corrective orders to the ship for violation of five items of safety standards, including the lack of fire prevention equipment using sea water.