-Caveat Lector-

Italy Brings North Korea Out of Isolation
6 January 2000

SUMMARY

The Italian Foreign Ministry announced Jan. 5 that it had exchanged letters
with a Rome-based North Korean diplomat, opening relations between the two
countries. This move also opens up a world of possibilities for North Korea;
it serves as a way to improve ties throughout Europe and as a way for it to
break out of its relative international isolation. For Italy, it raises its
value throughout Europe as a bridge builder between Europe and pariah states.
It also sets the stage for Europe to gain more leverage in its transatlantic
economic ties.

ANALYSIS

The Italian Foreign Ministry announced Jan. 5 that Italian Foreign Minister
Lamberto Dini met with North Korea�s Rome-based permanent representative to
the U.N.�s Food and Agriculture Organization to formally establish diplomatic
ties between the two countries. Under the arrangement, Italy's ambassador in
Beijing will double as its envoy to Pyongyang but continue to live in China.
North Korea already has diplomatic relations with five European countries
including Austria, Denmark, Finland, Portugal and Sweden. However, in opening
diplomatic ties with Italy, North Korea now has ties with one of the Group of
Seven (G-7), the world�s seven leading industrialized countries.

Formal diplomatic relations with Italy are a major step for North Korea in
breaking out of its international isolation. It gives North Korea not only an
outlet to the rest the G-7 and Europe, but it also gives it more leverage in
its dealings with its neighbors � South Korea, Japan, Russia and China � as
well as with the United States. In fact, North Korea made this point very
clear just after the announcement in an unscheduled press conference.

Just hours after Italy announced that it would open diplomatic ties with
North Korea, the North Korean government announced that it would rescind
plans to send a senior envoy to the United States for an official visit. �Our
delegation cannot visit the U.S. under the present circumstances,� said North
Korean ambassador to Beijing Chu Chang-Jun. Chu also announced that future
talks with South Korea and Japan would depend on a change in attitude from
the two countries toward North Korea. �Whether a North-South summit will be
open or not depends entirely on the behavior of [South Korean President] Kim
Dae-jung,� he said. He made almost identical remarks concerning
Japanese-North Korean relations saying, �The future of Japan-North Korea
talks depends entirely on the attitude of the Japanese government.�

Still, both Japan and South Korea attempted to play the move to their favor.
Japanese Chief Cabinet Secretary Mikio Aoki reportedly said, �Any opening in
the channels of communication with North Korea should be welcomed.� South
Korea also welcomed the move saying it was in line with Kim�s Sunshine Policy
of engagement with the North. The South Korean Foreign Affairs and Trade
Ministry told South Korean media that, �We respect the Italian government�s
decision, which we consider will help North Korea�s integration into the
international community.�

Despite the cautious optimism from both Japan and South Korea, it is apparent
that North Korean and Italian relations could endanger the Sunshine Policy,
since it is designed to link the North�s economy to the South�s. These ties
may serve to strengthen the North Korean economy by opening up the
possibility of European investment. Also, in securing a bridgehead in the
industrialized world, North Korea increases its maneuverability, making it
more complicated for its neighbors to take measures against the state, in
effect weakening the U.S., South Korean and Japanese leverage on the
Stalinist state.

For Italy, the opening of diplomatic relations with North Korea means
something entirely different. Even though Italy is the sixth European Union
(EU) member state to forge diplomatic links with Pyongyang, this move
enhances Italy�s reputation within Europe for forging relations with states
on the fringes of the international community. In previous cases, such as
with Iran and Libya, Italian openings have led to increased interaction
between those countries and the EU as a whole. The EU usually pushes a joint
diplomatic and security policy, but establishing ties with a certain nation
is the sole decision of a member country.

In July 1998, Italian Prime Minister Romano Prodi's visit to Tehran, where he
met with both Iranian President Mohammad Khatami and supreme leader Ayatollah
Ali Khamenei, paved the way for a gradual thaw in Iranian-Western ties and
allowed Iran to call for a dialogue with the EU. This opened up the way for
Khatami to make state visits to Italy in March 1999 and to Germany and France
later that year. It was the first visit by an Iranian leader to Western
Europe since 1979.

Italy also moved to re-invigorate ties with Libya through a visit by Italian
Prime Minister Massimo D'Alema on Dec. 2, 1999, to its former colony where he
met with Libyan leader Moammar Gadhafi. It was the first visit by a Western
government leader since sanctions were imposed seven years ago due to Libya's
suspected involvement in the airplane bombing over Lockerbie, Scotland in
1988.

Improved ties between Italy and these two countries make sense for Italy,
since Iran is Italy's third largest oil supplier after Libya and Saudi
Arabia. This latest move to extend diplomatic relations to North Korea,
however, is different. North Korea has little, if any, trade activity with
Italy. Instead, it is likely that this move is meant solely as a way for
Italy to strengthen its position within the EU.

As is the case with Iran and Libya, Italian ties with North Korea are likely
to have a domino effect for the rest of Europe. Italy is one of the largest
countries in Europe, yet its international influence lags behind that of its
larger European partners. France has maintained and capitalized on its
contacts throughout the Middle East and Africa. Germany is a key interlocutor
among Europe, Russia and Eastern Europe. Britain maintains some influence
over its former colonies and continuing members of the British Commonwealth.
Even economically deprived Spain still exerts a considerable amount of
influence in Latin America and Cuba.

Even so, this serves as a major victory for Europe as a whole, as it clears a
path for Europe to gain more leverage against U.S. economic pressure. Europe
capitalized on improved ties with Iran and Libya in May 1999 to challenge the
Iran-Libya Sanctions Act, a U.S. law that bars large companies from trading
with the two countries. The United States capitulated and announced that
European firms were exempted from U.S. laws prohibiting trade with Iran and
Libya. This foreshadows similar problems with U.S. interference in potential
European trade with North Korea, which also is subject to U.S. sanctions.

In essence, diplomatic relations work in both North Korea and Italy�s favor.
The ties help North Korea break out of its isolation and serve to place Italy
at the forefront of diplomatic rapprochement. However, this move does not
bode well for North Korea�s neighbors Japan and South Korea who have hoped to
moderate North Korea on their own. The move also hinders U.S. efforts to
contain North Korea.

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