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C O N F I D E N T I A L SEOUL 001045 

SIPDIS 
E.O. 12958: DECL: 05/21/2018

TAGS: PGOV PREL PINR KS KN

SUBJECT: LEE HOI-CHANG LOOKS FOR BEEF SOLUTION 
Classified By: Ambassador Alexander S. Vershbow.  Reasons 1.4 (b,d). 
¶1. (C) Summary: The Ambassador’s May 20 lunch with three-time

Presidential candidate Lee Hoi-chang focused primarily on

possible solutions to the controversy surrounding the

reopening of the Korean market to U.S. beef.  Lee also talked

about the “balancing and checking” role that his minority

conservative party (Liberty Forward Party or LFP) would play

in the next National Assembly session beginning May 30, and

about his efforts to secure negotiating bloc status (NOTE:

LFP has 18 seats currently; 20 are needed for a negotiating

bloc. END NOTE).  Lee said that President Lee Myung-bak is a

strong president who needs to work more on building consensus

for his policies and should change his attitude toward

political rival Park Geun-hye.  After lunch, Lee Hoi-chang

came back to the beef issue, explaining his position and the

reason for the widespread protests, and asked for the

Ambassador’s thoughts on possible solutions.  Lee, who

repeatedly emphasized his pro-FTA stance, said the key to

solving international trade issues was an objective and

level-headed approach.  End Summary. 
—————————————

Protests Born of Public Dissatisfaction

————————————— 
¶2.  (C) Before lunch even started, Lee emphasized to the

Ambassador that his concern with U.S. beef imports is not the

safety of U.S. beef right now, but rather the safety of such

imports in the future.  Lee said the cause of the beef uproar

was not beef itself but was instead an indicator of how

frustrated people are with Lee Myung-bak and his leadership

style. 
¶3.  (C) Choosing to switch to Korean because of the

complexity of the issue, Lee Hoi-chang explained his position

to the Ambassador.  According to Lee, the focus of the debate

has been wrong from the beginning.  The GNP insisted early on

that U.S. beef was safe and that it was anti-American to

suggest otherwise.  Consequently, Lee said, safety concerns

obscured the real issue — Korea’s rights in the event of new

BSE cases in the U.S.  Lee said he had held several press

conferences to try to reshape the debate.  Lee suggested a

two-part solution to the controversy.  The first step would

be to revise, complement, or supplement section 5 of the beef

agreement so that the Korean Government could suspend beef

imports even if the OIE had not downgraded the risk

assessment of the U.S.  The second step would be to insist

that the Minister of Agriculture step down and take

responsibility for the controversy. 
¶4.  (C) Lee said that a Blue House representative had come to

his office on May 19 to explain the clarification letter from

USTR Schwab.  The problem with leaving it at that, Lee said,

is, while Korea can suspend imports under Article 20 of GATT,

the U.S. also has the right to dispute Korea’s actions.  Lee

suggested that perhaps there could be a side agreement

between Korea and the U.S. that would restrict the U.S. from

doing so on the beef issue.  Alternatively, Lee suggested,

there could be side letter that would attach a time limit to

any suspension of imports carried out under GATT Article 20. 
¶5.  (C) The Ambassador noted that such a side agreement would

significantly change the agreement, thus eroding Korea’s

credibility in future negotiations, Congressional support for

the KORUS FTA, as well as U.S. business confidence in working

with Korean firms.  The Ambassador said that we need to find

a quick solution that does not fundamentally alter the

agreement before the issue causes any undue tension. 
——————————–

Moving Toward a Negotiating Bloc

——————————– 
¶6.  (C) Lee said his conservative Liberal Forward Party (LFP)

is trying to recruit at least two more members for the 18th

National Assembly that begins May 30.  Lee’s party currently

is 18-members strong, leaving them just two members shy of

the 20 needed in order to form a negotiating bloc in the

National Assembly.  Despite speculation that Lee would

recruit those pro-Park Geun-hye lawmakers who were not

accepted back into the ruling Grand National Party, Lee

emphasized that many of those politicians were only elected

because they promised to rejoin the party.  The LFP is so

small, Lee said, that they need “men of belief” who are

willing to work hard.  The former GNP-ers were politically

maneuvering for their own benefit and were not serious about

working for the Korean people. 
—————————————-

President in Need of Attitude Adjustment

—————————————- 
¶7.  (C) Lee Myung-bak’s policy failures have stemmed from his

predilection to work only with his own people, so it was

difficult for him to build widespread support.  The

Ambassador asked about the prospects for a truce between Lee

Myung-bak and Park Geun-hye.  Lee Hoi-chang said Lee

Myung-bak had to change his attitude toward Park.  The change

in the President’s attitude was more important than Park’s

influence.  Lee Hoi-chang predicted that Lee Myung-bak would

eventually try to reach out to the LFP.  Lee Hoi-chang, a

veteran politician, noted that even a large GNP majority

would not have guaranteed a stable National Assembly; even

the ruling party needs good coordination with other parties

in order to get legislation passed.  If the ruling party

tries to do things unilaterally in the next National

Assembly, it will not get anything done. 
——-

Comment

——- 
¶8.  (C) Lee Hoi-chang is the last of a dying breed in Korea

– the old-style boss politician who can run a party based on

personal support and a regional base.  Park Geun-hye, the

only other politician who has the kind of personal appeal

that Lee has, has chosen to stay within the GNP.  Lee’s 15.1

percent showing in last year’s presidential election was

impressive but highlighted growing limitations on personal

politics in Korea.  Lee has high hopes for his party and some

speculate that he is gearing up for another run for the Blue

House in 2012.  Perhaps.  For now, however, he is a marginal

figure and his speculation that the GNP will reach out to him

is probably wishful thinking.  End Comment.

VERSHBOW