At the contact the north side noted with concern that the north-south relations which had favorably developed since the publication of the June 15 joint declaration have reached the phase of catastrophe and even the KIZ symbolic of the June 15 era was thrown into a serious crisis and clarified a principled stand and advanced concrete proposals for improving the operation in the KIZ as required by the changed inter-Korean relations and in line with the actual conditions.

The north side asserted that it called for the reexamination and renegotiations of the business in the KIZ because there was no reason for keeping any longer the preferential measures which had been taken in the spirit of "By our nation itself" now that the historic north-south joint declarations were totally negated.

Recalling that many enterprises of the south side are operating in the KIZ at present to gain big profits whereas the north side has not received payments at a proper level as far as land use tax, wages for workers of the north side and tax on the zone, etc. are concerned, the north side advanced draft amendments to the contracts on land use tax, wages, taxes, etc. in the KIZ.

The north side urged the south side to rapidly push forward the construction of lodging quarters, nurseries and roads for the north side's workers to attend and leave their work sites, etc. as already agreed upon as an immediate step for bringing the business in the KIZ back on track.

It also expressed its willingness to take additional measures to allow the number of the personnel of those businesses that newly started their operations to stay in the KIZ and pass through it and other matters at the same level as those already active in the zone were done.

Saying that the principled stand and proposals made by the north side correctly reflect the present north-south relations and the situation of the KIZ and they are a token of the sincere efforts for putting the business in the KIZ on a normal footing, the north side urged the south side to respond to them.

Then followed a speech by the south side.

There was a discussion on the proposals of the north side.

Both sides agreed to have the next working contact on June 19.