Reuters.com

North Korea approves historic rail border crossing
http://www.reuters.com/article/topNews/idUSSEO28612120070511

Fri May 11, 2007

By Jon Herskovitz

SEOUL (Reuters) - North Korea's military signed off on Friday to a deal
allowing the first trains to cross its heavily armed border with the South
in more than 50 years, which Seoul sees as a milestone in reconciliation.
The two Koreas, still technically at war, plan to send two passenger trains
across the border -- one starting from the North and the other from the
South -- next week for the first crossing since their fratricidal 1950-1953
conflict.

"The railway between the two Koreas will by re-connected for the first time
in more than 50 years by providing (a) military security guarantee for the
scheduled May 17 train run," South Korea's Defense Ministry said in a
statement.

The North only agreed to a one-off test run and extended the military talks
for an extra day, mainly over a squabble in a joint statement where
Pyongyang pressed for increased fishing rights in disputed waters on the
west of the peninsula.

South Korea, which is fearful of the estimated hundreds of billions of
dollars it would cost to eventually unify with its impoverished neighbor,
has sought a series of projects with the North to help gradually bring the
two together.

The South has built an industrial park it sees as a model of economic
cooperation just north of the border where its companies use cheap North
Korean land and labor to make goods.

It has also built two rail crossings. One is on the east coast near a
mountain resort in North Korea already visited by over 1 million South
Koreans and run by an affiliate of its Hyundai Group.
The other is about 60 km (40 miles) northwest of Seoul and runs near the
industrial park.

Seoul wants to use the rail crossings to develop these projects
and eventually take passengers and cargo across North Korea and into China
and Russia.

The South has already constructed elaborate but now cavernous and idle
stations near the border.

North Korea's military, fearful of increased contacts between the isolated
state and the outside world, blocked a planned train run last year.
To entice the North to allow the crossing, South Korea has offered some $80
million in aid for its light industries.

Tracks run from the South and into the North with compatible gauges, but the
North's trains operate on an archaic system mostly built during Japan's
1910-1945 colonial rule.

It needs a complete overhaul in order to work with the South's modern and
automated system, experts said.

(With additional reporting by Rhee So-eui)

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