For this reason, Japan will transfer the funds to the United Nations' World Food Program, which then will buy surplus rice from Japan for shipment to North Korea. Messrs. Makita and Kim also agreed to move normalization talks to the front burner. Foreign Minister Yukihiko Ikeda insisted August 23 that the issues of Japan visitations, North Korean food aid and Japan-North Korea diplomatic ties were not directly linked. However, most experts contend that it is unlikely that the two sides would have realized as much progress as they did on the resumption of normalization talks had Pyongyang not demonstrated flexibility on the visitation issue. These same analysts attribute the apparent softening of North Korea's position to its recognition that continued economic isolation may lead the country to ruin.
Japan remains wary of Pyongyang's intentions, however.
The views expressed in this report are those of the author and do not necessarily represent those of the Japan Economic Institute. The next issue will be dated September 12, 1997.