At the contact, the north side expressed regret over the fact that no progress has been made in the working contact though it made sincere efforts as evidenced by its advancement at the previous contacts of the constructive proposals for reexamining and renegotiating the work in the KIZ as required by the changed north-south relations and the present reality, etc.

It is necessary, above all, to refrain from doing anything to create difficulties in the way of the working contact, the north side held, recalling that unpleasant things contrary to the contact are taking place in south Korea without let-up and the campaign for "sanctions" and reckless remarks calling for confrontation in the systems are getting undisguised there.

Noting that even the "basic plan for defence reforms" simulating a "preemptive attack" and "contingency" is made public, the north side continued:

What should not be overlooked is that the authorities of the "Ministry of Unification" of the south side themselves are vociferating about "no nukes, opening and 3,000 dollars" and "resolute counteraction," spoiling the atmosphere of the contact.

When sitting face to face with the north side, the south side talks about "dialogue" and "sincerity" but incites confrontation behind the scene. Such behavior compels the north side to question whether the south side is willing to have the working contact or not.

Urging the south side to take honest attitude and stand toward the discussion on the revision of the said contracts, the north side went on to say:

Taking an insincere attitude toward the working contact from its start, the south side has groundlessly turned down our proposals without any deep study of them and raised issues irrelevant to the contact, creating complexity.

It went the lengths of floating even the story about the "closure" of the KIZ and some authorities are making very inappropriate remarks that "they would not negotiate in the same way as was done in the past."

The north side said the south side's assertion that it would not have the same dialogue as conducted in the past means it wants to have a contact for confrontation, questioning the south side what is the use of having a working contact if it is its stance. The north side urged the south side to refrain from doing such things quite contrary to the desire and expectation of the nation.

The north side proposed the south side to begin with discussing the issue of land use tax, the top priority and essential matter, at this contact as it put forward comprehensive proposals at the last contacts as regards the issue of the revision of the contracts on the KIZ. The north side referred in detail to the purport and propriety of its proposal.

Saying that the level of the land use tax proposed by the north is by no means high in view of the universally accepted practice in the special zones of south Korea and other countries and the peculiarity and value of the KIZ and its prospect, the north side urged the south side to carefully study its proposal and honestly accept it.

Expressing once again its readiness to settle the difficulties which the enterprises of the south side are facing in the management, depending on the settlement of the issue of the land use tax, in particular, the north side stressed that the south side would reciprocate good faith and magnanimity in kind.

The south side, however, doggedly asserted that it cannot accept the just claim of the north side, not only avoiding the discussion of the basic issue but letting loose sheer sophism.

The south side did not hesitate to talk nonsense that it has not received any special treatment in the KIZ so far.

The north side strongly chided the rude and insincere attitude of the south side as a deliberate and premeditated provocation to scuttle the working contact and took serious note of this.

It declared that the fate of the working contact and the prospect of the KIZ will entirely depend on the future attitude of the south side.