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CNN SUNDAY MORNING

North Korea Responds to Tailored Containment Policy

Aired December 29, 2002 - 08:03   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

CATHERINE CALLAWAY, CNN ANCHOR: We have more on the top story this morning, North Korea is responding to the Bush tailored containment policy. For that, let's check in with CNN White House correspondent Suzanne Malveaux; she's joining us from Crawford, Texas, this morning.
Hello, Suzanne.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Good morning.

You're absolutely right. North Korea is already responding to the U.S. policy to use financial and diplomatic pressure to get North Korea to abandon its nuclear weapons program.

A commentary on the state-sponsored news agency saying the U.S. is seriously mistaken if they think they can bring Koreans to their knees. But the Bush administration is insisting that it will not negotiate with North Korea until it disarms.

(BEGIN VIDEOTAPE, PACKAGE REPEATED FROM LAST NIGHT)

MALVEAUX (voice over): A senior administration officials says the White House has a new policy to deal with the increasingly defiant North Korea. It is called tailored containment.

A plan the president has signed off, onto, to put maximum financial and political pressure on North Korea's Kim Jung Il to abandon his nuclear weapons programs. The plan, with already some components in place, has recently come together as tensions have mounted. Under the new policy the Bush administration would work with the International Atomic Energy Agency to bring North Korea's case before the United Nations Security Council.

The U.N. could declare North Korea in violation of the Nuclear Non-Proliferation Treaty. And perhaps, impose economic sanctions, putting more international pressure on North Korea to discontinue its nuclear programs.

The plan also calls for the U.S. to encourage North Korea neighbors to limit, or even sever their economic ties with Pyongyang. Japan and South Korea have already cut off their oil shipments to the country.

And the policy has an active military component as well. U.S. vessels could intercept missile shipments from North Korea to cut into their profits from weapons sales. It is a policy a senior administration official says would depend greatly on the cooperation of U.S. allies. But if successful could isolate North Korea to the point it has to give up its nuclear ambitions, or face a crippled regime.

The new policy comes amid growing criticism that the Bush administration's handling of North Korea so far has only lead to an escalation of tensions.

MICHAEL O'HANLON, BROOKINGS INSTITUTION: It is a very serious crisis. And the current Bush policy is failing. This is a very good foreign policy team doing a very bad job, right now, on North Korea.

(END VIDEOTAPE)

MALVEAUX (on camera): Now, the White House insisting that it will not negotiate with North Korea until it abandons its nuclear weapons program. But a senior administration official says that the administration would not object to low-level talks with North Korea if it had something constructive to say. But as one official put it, there would be no deal making.

Catherine.

CALLAWAY: Suzanne, as you just reported, in that byte there, there is so much criticism now, the Bush administration's handling of this crisis. What's the next step? What's the next diplomatic step at least?

MALVEAUX: You're going to see a lot of activity in the next couple of weeks. We're sending an envoy to South Korea. We understand also the South Korean president-elect may be visiting President Bush soon, as well. And also, South Korea is sending its own envoys to allies in China and Russia. We expect there will be a number of low- level talks that will be taking place the next couple weeks. And we'll see where it goes from there. But the administration is certainly hoping that with this financial as well as diplomatic pressure that North Korea will cooperate.

CALLAWAY: All right, Suzanne. Suzanne Malveaux in Crawford, Texas. Thank you, Suzanne.

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