Honorable Dr. Hong Seok Hyun, Chairman of JoongAng Ilbo,

Honorable Dr. Lee Hong Koo, former Prime Minister,

Honorable Sugita Ryoki, Chairman of NIKKEI,

Distinguished Guests, Ladies and Gentlemen,

Good afternoon. It is a great honor to address such distinguished members of the press and esteemed

experts. I would like to thank Chairman Hong and his staff for organizing this meaningful event.

Let me start out by saying how pleased I was to hear of today’s theme—a reflection on China’s past

60 years and an evaluation of its next steps—for we have indeed learnt many valuable lessons from

it.

It is really timely and pertinent that we have this opportunity to think about China’s role in the 21^st

century and ways to ensure a stable and prosperous future for the Korean Peninsula, as well as

peace for the wider Northeast Asian region.

Distinguished guests!

For historical and geopolitical reasons, the Korean Peninsula and Northeast Asia have been home to

various conflicting interests of superpowers. However, unlike circumstances on the Korean Peninsula

and Northeast Asia at large, the European Union has become a model example of an integrated

economy and a system built on shared values.

Unfortunately, Northeast Asia is still afflicted with the painful relics of the 20^th century, unable to

unshackle itself from long-standing territorial disputes and tormenting conflicts. In particular, the

North Korean nuclear problem remains the most outstanding and pressing issue.

Distinguished guests!

This year marks the 60^th anniversary of the foundation of the People’s Republic of China, and 30

years of reform and its drive to become more open. Over the last 60 years, China has undertaken

and dealt with the effects of two very contrasting historical experiments—that is, Cultural Revolution

and a drive for reform and openness.

This 60 years of change is extremely significant because it enabled China to become the rising power

that it is today. This in turn gives China many opportunities and the ability to help resolve many

fundamental problem areas in Northeast Asia. My belief in China’s role is rooted in the following:

First, China is a major player in East Asia, which has emerged as the center of gravity of the global

economy. As is well known, China announced its national goal aimed at establishing a Xiao Kang

society by 2020. To achieve this type of society where all 1.3 billion Chinese people are able to enjoy

a middle class standard of living, China is growing at an amazingly unprecedented pace. As an engine

of global growth, China has enormously contributed to free trade and stabilization in the region. More

importantly, it has shown to the world that its great experiment with reform and market opening has

succeeded.

Second, as the host country of the Six-party Talks, China played an important role in efforts to

resolve the North Korean nuclear problem. We are deeply encouraged by the fact that China is

actively expanding its role as a “responsible stakeholder” in the 21^st century. With the regional

security cooperation system still in the making, countries in the region are applauding China’s

meaningful contributions.

Third, on the international scene, China continues to play a constructive role for stabilization of the

international order. In particular, China is maintaining a very cooperative relationship with the United

States. As President Obama stated in his opening address at the U.S.-China Strategic Economic

Dialogue in July, “The relationship between the U.S. and China will shape the 21^st century,” their

stable strategic cooperation will enable a soft-landing in global political landscape. The implication of

this for the future of Northeast Asia’s international order is not trivial or insignificant at all. It will

greatly contribute to political stabilization and prosperity in Northeast Asia.

Distinguished guests!

As you are well aware, the “North Korean Nuclear Question” is the most pressing security issue in

the region. Unfortunately, North Korea conducted a second nuclear test and made it clear that it will

keep developing nuclear weapons. Unless we completely resolve this critical issue, it will eventually

trigger increasing nuclear proliferation around the globe which will cause seismic change in the

international security order.

Over the years, the international community has developed a solid consensus that North Korea must

dismantle its nuclear weapons. And the international community has high expectations that China will

play a contributing role in persuading North Korea to do so.

As you may know, China hosts the Six-party Talks, and we believe it has great influence over North

Korea in all important aspects. It is North Korea’s largest trading partner, accounting for almost 70

percent of North Korea’s foreign trade in 2008.

China and North Korea are still so-called “blood allies.” They are celebrating the 60^th anniversary of

their alliance ties, and have designated this year as the China-North Korea Friendship Year. Now,

North Korea needs to take a new path into the future. As Deng Xiao Ping had correctly put it several

decades ago, “Poverty is not socialism. To be rich is glorious,” we need to encourage North Korea to

choose prosperity over nuclear weapons. Taking examples from China’s 30-year experience of

reform and economic success, we need to make North Korea realize that it can construct a Xiao

Kang society of its own, where all people can enjoy a prosperous and high standard of living.

Bold reform measures and liberalization are the only measures that will help guarantee a bright future

for North Korea in the 21^st century. Learning from “Nam Xun Jiang Hua,” the famous lectures

given by Deng Xiao Ping when he visited the southern provinces of China in 1992 to reassert his

economic agenda, North Korean leaders must realize that they can achieve economic prosperity only

by following this path of reform.

Distinguished guests,

The ROK government announced its Vision 3000: Denuclearization and Openness Initiative. We

believe this is the most realistic and future-oriented strategic roadmap aiming at resolving North

Korea’s nuclear problem peacefully. If North Korea decides to discard its nuclear ambitions, it will

be able to achieve economic development in a very short period of time. I strongly believe this will

ensure the future prosperity of North Korea.

Distinguished guests!

We must move on from the conflict and confrontation that we witnessed in the 20^th century. We

must open up a new chapter in history that will be remembered as an era of peace, cooperation, co-

existence, and co-prosperity. Creating peace on the Korean Peninsula through denuclearization is a

prerequisite for peace and cooperation in Northeast Asia. Under this clear understanding, the ROK

government has implemented its policies towards North Korea consistently, even in spite of North

Korea’s provocations and hard-line stance.

Last month, President Lee Myong Bak declared his New Peace Initiative for the Korean Peninsula,

aimed at resolving the North Korean nuclear problem and advancing inter-Korean relations. He

clearly stated that if North Korea demonstrates its determination to discard nuclear weapons, the

ROK government will partner with the international community to help develop North Korea’s

economy and to enhance the quality of life for the North Korean people.

In addition to ensuring a nuclear-free Korean Peninsula, President Lee asserted the need for

reducing conventional weapons. He stressed the importance of building mutual trust and creating a

system of interdependence between the two Koreas.

As such, President Lee’s New Peace Initiative encompasses all critical issues surrounding the

Korean Peninsula—it argues for the dismantlement of nuclear programs, reduction of conventional

weapons, advancement of economic cooperation and confidence building between the two Koreas.

Such a comprehensive approach will guarantee substantial and sustainable peace on the Korean

Peninsula. Furthermore, it will facilitate peace and cooperation in Northeast Asia. I believe all

stakeholders on the Korean Peninsula will agree on this point.

For President Lee’s New Peace Initiative to be successful, international cooperation is essential. At

this point, the Six-party Talks still remain the most realistic and viable option for a nuclear-free

Korean Peninsula. If the six-party process can lead to a denuclearized Korean Peninsula, it will serve

as a milestone for building a multilateral security cooperation system in Northeast Asia. By leveraging

existing bilateral alliances and multilateral security arrangements, we can create new norms,

principles and rules that will ensure stability and peace in Northeast Asia.

To this end, we need to create mutual understanding in regards to the need for peace and stability in

the region. This forging of mutual understanding and the establishment of new norms, principles and

rules represent two grand pillars of an ideal future for Northeast Asia. To make this a reality, again,

the key is to denuclearize the Korean Peninsula and bring stability and peace to Northeast Asia.

If we fail to meet this goal, tensions on the Korean Peninsula will reverberate throughout the wider

East Asian region. North Korea’s possession of nuclear weapons may inevitably trigger greater

tension among all the concerned parties. We don’t want this to happen. So we must work closely

together to prevent this catastrophe from becoming a reality.

Distinguished guests!

We want peace, but only if it is a nuclear-free peace;

We want prosperity, but only if both the South and North can enjoy it together;

We want unification, but only if it is achieved in a peaceful way.

Only in this way can we guarantee a bright future for the Korean Peninsula.

We are accountable for writing the next chapters in our history. Mindful of our responsibilities, we

will do our part as a key stakeholder on the Korean Peninsula. Under whatever circumstances, we

will strive for peace, stability and prosperity on the Korean Peninsula.

We will do all we can for the welfare and happiness of Korean people in the North. For this, we will

closely work with our allies and partners. Thank you for listening. Please enjoy the wonderful autumn

season and all that Korea has to offer.