We will work out these disputes through discussion and negotiation of mutually acceptable terms. Finally, let me address the U.S.-Korea security relationship. Thus far, globalization has not ended the tragic division of the Korean Peninsula. Despite reduced diplomatic support and economic assistance after the Cold War and a prolonged economic crisis brought on by a failed juche ideology, North Korea's conventional military force remains a formidable threat. North Korea's willingness to invest scarce resources in missile programs and weapons of mass destruction, despite the desperate condition of its people, adds to our concern.
Deterrence remains essential.
The United States remains committed to guarding peace and stability on the Korean Peninsula. As long as North Korea remains a threat to peace and stability, and as long as we are needed, we will stand with the Republic of Korea to deter aggression. There are some tentative signs recently that North Korea has begun to reconsider its self-imposed isolation. We must act on this opportunity to engage North Korea, showing Pyongyang it has more to gain from engagement than from confrontation. Taking the lead from President Kim's Engagement Policy, we are working on a series of diplomatic and economic initiatives outlined by Dr. William Perry, former Secretary of Defense, including a visit of a high-level North Korean delegation to Washington in the next several weeks.