Speech by Ambassador Thomas C.
Hubbard
to the U.S.-Korea Forum
November 8, 2001
Thank you very much, Dr. Kim, Assembly Member Yoo, members of the U.S. Korea Inter-Parliamentary Exchange Council and the U.S.-Korea Forum, distinguished guests, ladies and gentlemen:
Thank you very much for honoring me with your invitation to speak here this morning. I am truly honored and, in fact, humbled by the opportunity to serve as U.S. Ambassador to Korea to deal with this very important relationship at such a critical time. And I am truly impressed that so many distinguished members of the National Assembly are prepared to get up this early in the morning, come out on a cold morning and listen to me talk. Organizations such as the Inter-Parliamentary Exchange Council and the U.S.-Korea Forum play a valuable role in promoting lively intellectual exchange, helping the citizens of our two countries to understand each other even better.
As many of you know, I arrived in Korea precisely when the terrorist attacks were taking place in Washington and New York on Sept. 11th. And in that context, I would like to begin by thanking you, the members of the National Assembly for your unanimous resolution condemning those attacks. The outpouring of generous words and gestures of support in the dark days following the attacks meant a great deal to us. I would like to thank those of you who attended the Embassy's memorial service for the victims of terrorist attacks, some of whom, tragically, were citizens of Korea. As you have expressed regret at the loss of my fellow citizens, I also offer my condolences for your loss.
In the aftermath of these vicious terrorist attacks, the Republic of Korea has offered not only words and gestures of support, but also concrete action, including budgetary outlays and commitments of personnel and materiel. We are gratified at Korea's participation in the coalition against terror-gratified, but not surprised, because we expected nothing less from one of our most steadfast allies.
As a result of these attacks, a broad coalition of nations from all over the world has formed, and has pledged to work together on many fronts-military, diplomatic, financial, and judicial, to combat terrorism. The struggle will be hard, and will require endurance, patience, and resolve. I am confident that just as Korea was one of the first countries to offer its support, so will it continue to persevere with us. I note that Korea played a significant role in our campaign to liberate Kuwait in 1990 and 1991, and more recently has sent a peacekeeping force to East Timor. We know that Korea can always be counted on to do its share as a major player in their international community.
President Kim was one of the first world leaders to call President Bush to offer his condolences and support. At the recent APEC summit meeting in Shanghai, President Kim repeated his commitment to participate actively in the coalition, and noted that, just as no country on earth is safe from terrorism, so must all countries cooperate in the long, hard struggle against terrorism.
For its part, North Korea issued a statement deploring the terrorist attacks shortly after they occurred. I note that in late October a delegation from the European Union met with officials and ministers in Pyongyang, and strongly urged North Korea to take a more active role in the fight against terrorism. Reportedly, North Korea plans to sign the International Convention for the Suppression of the Financing of Terrorism. We welcome this step. There is more North Korea can do. This is an opportunity for all countries to join the large family of nations who have chosen to stand up to terror.
I would like to once again emphasize that the United States fully supports the efforts of President Kim to engage North Korea in dialogue. We have always maintained that South and North Korea-the two countries most directly involved-hold the key to peace and stability on the Korean peninsula. We share your hopes that the most recently scheduled ministerial meetings will prove fruitful.
As you know, the United States would also like to resume talks with North Korea. We have repeatedly made clear that we stand ready to hold discussions with North Korea at any time and any place, without preconditions. Among the items we would like to discuss are reduction of the North Korean missile threat, improved implementation of the Agreed Framework, and steps towards reduction of the conventional military threat and towards addressing humanitarian concerns. I am certain that North Korea has items of its own it would like to raise, and it is certainly welcome to do so. Let me repeat we are prepared to begin talks without a fixed agenda.
Our alliance with the Republic of Korea to maintain peace and stability on the peninsula, combined with our more recent joining together with many other nations to fight terrorism, sometimes overshadow other important facets of our partnership, one of which is our economic relationship.
In barely fifty years, Korea has risen from the ashes of a destructive war and has become the eleventh-largest economy in the world. Its citizens enjoy a quality of life unimaginable just a few short decades ago. Korea made this progress due to the hard work, tenacity, skill, and determination of its people.
However, as Korea looks to the future, there are still some areas which need further reform if it is to continue to prosper. Some practices that worked effectively two or three decades ago during a different stage of Korea's development now hamper, rather than advance, Korea's further economic progress.
Following the East Asian financial crisis of late 1997, Korea went through a period of severe trial. The onset of the crisis only slightly preceded the beginning of the administration of President Kim Dae-jung, who saw the need for bold action and took it. The dramatic recovery of 1999 and 2000 can be attributed, at least in part, to a series of reform measures he initiated. Much has been accomplished, but more needs to be done.
Now, I am not an economist but I am also not a medical doctor. But I am a firm
believer in the values of open markets and liberal economies. So let me digress
a moment to give you a metaphorical example of what we mean. Many illnesses
require a full course of treatment to be cured. But often, after the patient
has taken the medicine for several months, the symptoms - cough, weakness, pain
etc. disappear and the patient feels fine, assumes he is cured, and stops
taking the medicine. But the illness still lingers there - and it will come
back. I hope you see where this example is leading.
I urge Korea to stay the course on financial and corporate reform. Obviously it will be a painful process for many, and the temptation to avoid further pain, to say "Enough! No more!" is always there. It is always tempting to think that, after a period of pain and sacrifice, one can go back to the old ways of doing things. All of us are creatures of habit, and are most comfortable with familiar routines. But I believe, in the long run, there is no alternative to change-it can be managed and adapted to, but it can, must, and will occur.
Now, why should change in Korea matter to people outside Korea? Because Korea is an important and an integral player in the world economy. The United States' is the largest market for Korea's exports but Korea is also the United States' sixth-largest export market in the world. There is considerable Korean investment in the U.S. economy, and much American and other foreign investment here in Korea. Just as we have strong security ties formed by our defense alliance, so do we each have a stake in our mutual prosperity.
Naturally, not even the closest of friends always agree. With a trading and economic relation as varied and complex as ours, some areas of disagreement and friction are unavoidable-market access and protection of intellectual property rights, for example. We have resolved some of our disputes through bilateral discussion and negotiation. Others we take to the World Trade Organization to resolve our differences. However, we must always remember that our areas of agreement greatly outnumber and outweigh those areas where we differ.
What do we share? We have shed blood together and continued to cooperate closely to ensure our common defense. We are also both democracies, committed to democratic values, including freedom of speech and the rule of law. Both our countries have prospered by following the principles of a market economy.
I know that many of you are concerned about the present state of the Korean economy. In the present world situation, the world's three largest economies-the U.S., Japan, and Germany-are in a phase of low or no growth. Part of this is a result of the attacks of September 11, although in the U.S., the economy had been weakening since the summer of 2000, and Japan's economy has had difficulties for a decade. Naturally this will affect Korea's economy, which is heavily dependent on exports.
Korea has weathered many storms in its long history. The present economic difficulties will not last forever, either in Korea or in other regions of the world. However, I would reiterate that this is even more the time to continue with the domestic economic reforms in various sectors which have already been well begun.
I have also been asked to speak about future issues in our relations. We often assume that today will be just like yesterday, that tomorrow will be much like today. Many times, this appears to be true. But there are some days which bring great change, days after which it seems nothing will ever be the same, days such as September 11, 2001.
Nobody can predict the future, nor can anyone fully prepare for it. We face the future with what skills, resources, and knowledge we have, and adapt as best we can. The strength and determination of the Korean people enabled the nation to survive the dark days in its history. So will we persevere together after the dreadful events of September 11.
I can, however, tell you what I wish for the future: I wish an even closer alliance between our two countries, a deeper friendship, greater mutual understanding, and renewed peace and prosperity for us all. Organizations such as yours give substance to our hopes. Thank you very much.