(THIS IS THE TRANSCRIPTS OF THE APEC SPECIAL ARIRANG NEWS THAT AIRED ON NOVEMBER 17, 2005- 22:00 KST. THE TRANSCRIPT MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.) AHN CHAK-HEE, ANCHOR: Hello and welcome to Arirang News. I'm Ahn Chak-hee bringing you the program from Busan, where it's the eve of the world's largest annual gathering of leaders. Coming up in the next half hour, we'll update you on what’s been happening at APEC meetings. We'll also have interviews with APEC participants. (APEC BRIDGE) 1 Title: Bush Arrives in S. Korea for APEC We're going to begin with the bilateral summit earlier today, between the South Korean and U.S. leaders. President Roh Moo-hyun and George W. Bush met in Korea's ancient capital Gyeongju, which is near Busan, and following their talks, there was a joint news conference, in which the leaders reaffirmed their commitment to a peaceful resolution of North Korea' nuclear standoff. Son Hee-kyung reports. Korea and the United States reaffirmed their stance to use diplomacy in a peaceful manner, to coax North Korea, to abandon its nuclear ambitions. But President Roh Moo-hyun and his U.S. counterpart George W. Bush warned a nuclear-armed North Korea would not be tolerated. President Bush stressed that the appropriate timing for the provision of light-water reactors should come after Pyeongyang's nuclear dismantlement. In a joint statement, after a one-hour summit, the two leaders also agreed the current armistice signed at the end of the Korean War in 1953 should be replaced with a peace treaty, to help contribute to peace on the Korean Peninsula. Korea and the United States reaffirmed their stance to use diplomacy in a peaceful manner, to coax North Korea, to abandon its nuclear ambitions. But President Roh Moo-hyun and his U.S. counterpart George W. Bush warned a nuclear-armed North Korea would not be tolerated. President Bush stressed that the appropriate timing for the provision of light-water reactors should come after Pyeongyang's nuclear dismantlement. In a joint statement, after a one-hour summit, the two leaders also agreed the current armistice signed at the end of the Korean War in 1953 should be replaced with a peace treaty, to help contribute to peace on the Korean Peninsula. ROH MOO-HYUN, KOREAN PRESIDENT: "Since the Korean War, the U.S. and Korea have held various talks, but today, I think, we resolved and discussed more issues than ever before. For example, we talked about the realignment and reduction of U.S. forces stationed in Korea. We also discussed strategic flexibility and the deployment of Korean troops in Iraq." The two leaders discussed the necessity of cutting agricultural subsidies, to help those in developing countries. Korean farmers have been protesting this move. And more than 200 Koreans gathered, to oppose Mr. Roh's talks with the U.S. president. Meanwhile, Mr. Bush talked about making concessions to conclude negotiations over a free-trade accord, at a World Trade Organization meeting, in Hong Kong next month. GEORGE W. BUSH, U.S. PRESIDENT: "I am hopeful that all of us will join together in promoting a successful Doha round at the WTO with the understanding that it is in our nation's interests that we have free and fair trade. The World Bank estimated that hundreds of millions of people will be lifted out of poverty if this round goes forward and I know you share the same concern I share about poverty in the world, Mr. President." This is President Bush's first visit to Korea since Mr. Roh's inauguration as president in 2003, and he is here to attend the Asia-Pacific Economic Cooperation forum. Son Hee-kyung, Arirang News. 2 Title: Chinese President Hu Supports Reunification of Two Koreas Meanwhile in Seoul -- Chinese President Hu Jintao spoke at the Korean National Assembly in Seoul, ahead of attending the APEC Leaders' Meeting. He said the most realistic and reasonable method to resolve the North Korean nuclear issue is through dialogue. The Chinese leader pledged support for the eventual reunification of the two Koreas. President Hu said Beijing's relations with Seoul were "entering the best period ever." He emphasized the need to facilitate economic cooperation to boost two-way trade, which is expected to hit 100-billion U.S. dollars this year. Former Cold War foes, China and South Korea only normalized diplomatic ties in 1992. China has been a staunch ally of North Korea, and this is the first visit to South Korea by a Chinese head of state since 1995. 3 Title: APEC CEO Summit 2005 Tackles Problems beyond Trade Liberalization Business leaders from the Pacific Rim economies kicked off the APEC CEO Summit with one goal in mind, entrepreneurship and prosperity. The A-list of CEOs taking part in the two-day forum includes chief managers from Citibgroup, a global banking giant and Gale International a major real-estate developer. Nam Ki-yung has this report. CEOs from around the world are putting their heads together, to build an Asia-Pacific trade partnership. It isn't only about corporate agendas. Leaders from the APEC member economies, policymakers and economists are also taking part at this year's two-day APEC CEO Summit to address the hurdles. HYUN JAE-HYUN, CHAIRMAN OF THE APEC CEO SUMMIT 2005: "In particular, recently surging demand for oil and ensuing high prices appear to certainly hamper the business activities and economic development. We also have suffered from tragic natural disasters." He says the economic challenges lie in the growing disparity among regional economies, the widening polarization of income distribution within an economy, new job creation and aging societies. Korea, now the 11th largest economy in the world, hopes to become a role model to developing countries. Among the 800-business leaders, seeking solutions is Vice Chairman of Citigroup, William Rhodes. WILLIAM R. RHODES, VICE CHAIRMAN OF CITIGROUP: "I spent quite a bit of time here in 1997 and 1998 restructuring the Korean debt where I learned to have tremendous respect for the Korean people for the way they were able to turn their economy so rapidly and in all my experience." Korean companies promoting international investment are here too, including Korea's leading construction company in charge of jointly setting up an international business hub called New Songdo City in Korea, by 2013. JOHN HYNES, PRESIDENT AND CEO OF GALE INTERNATIONAL KOREA: "I think there are a number of opportunities for us to participate here, one the ability to network with other CEOs from multinational corporations is important. That face time is invaluable and the ability to do so on location saves time." This year's APEC CEO Summit is being touted as the biggest in its history. "On the last day of the CEO Summit, Korean President Roh Moo-hyun will make a keynote speech on the challenges toward creating a one community. Other heads of state will also follow suit, addressing issues on free trade and natural disasters. Nam Ki-yung, Arirang News, Busan." 4 Title: Oracle Senior VP Keith Budge in Studio Interview Script is not provided. 5 Title: Distribution of Fish Products in Korea's Largest Port City, Busan As for what the residents of Busan are up to during this APEC week, it's really business as usual for them. For more on that, I'm going to toss things over to our Kim Du-yeon who is standing by outside the International Media Center, where I believe it's not as warm as it is in here. Hanging in there Du-yeon? Hello Chakhee! I'm here across from BEXCO where you are, and I can tell you the weather's quite nippy out here! But regardless, nighttime is when a lot of action takes place at Korea's largest seafood wholesale market here in Busan. Our Eun Jung takes us there. These are the sounds of thousands of tons of seafood being traded in Korea's largest wholesale fish market. "7,000. 7,500 won," the auctioneer shouts to hundreds of buyers. With hand signals agents make their bids for everything from saury pikes and mackerels to squid, traditional winter catches in Korea. EUN JUNG, REPORTER: "Trading Fish isn't for the late riser. At the break of the dawn, fish markets across Korea's biggest port city are bustling with buyers and merchants shouting and giving out hand signals, to secure the best stock." Around 32,000 tons of fish are traded here at Busan Cooperative Fish Market from, 6 a.m to 3 p.m. Every auction begins with a bell, and an auctioneer shouting out the base price for the fish stock. KIM HYUNG-IL, MANAGER OF PUSAN COOPERATIVE FISH MARKET: "Fishermen entrust their fish to us. Then agents, who got orders from buyers throughout the country, bid their price at an auction. Only licensed agents are allowed to make a bid. Auctioneers are those who sell goods at auction." Once bought, fish is either loaded onto trucks to be shipped to the inner regions, or on carts to be carried to nearby markets, all for domestic consumption. One of the destinations is Jagalchi Market, just five minutes away by car, which is also the biggest retail fish market. With a little exaggeration, here, you can find every type of fish imaginable. MERCHANT: "As for me, I buy my fresh fish such as flatfish and porgy directly from fish farming businesses." Here at Jagalchi, early morning hours are shopping time for restaurateurs. But later in the afternoon and into the evening, regular citizens come to stock up on their dinner ingredients. Due to the rapidly changing maritime climate, summer fish are making rare appearances in winter time here in Korea, and traditional winter catches are disappearing. But fish traders say types of catches may change, but not the energetic spirits in the fish markets. Eun Jung, Arirang News, Busan. 6 Title: Busan, Reminder of War Now for a bit of history on the host city -- For three years, during the Korean War, Busan was Korea's provisional capital where hundreds of thousands of refugees sheltered. Kang Minji visited one historic site in the city that holds a great meaning for Koreans. On the morning of June 25th, 1950, North Korean tanks crossed the military demarcation line between the two Koreas. As the attack spread south down the peninsula, refugees from all over the country, desperate to escape the fighting, poured into Busan, swelling the population by the hundreds of thousands. KANG MIN-JI, REPORTER: "I'm standing in the heart of Busan city and behind me over my left shoulder is an old bank building. From here to several kilometers down the road, the refugees once camped out for months after they had fled the North Korean advance." Choi Jong-soo, a former YMCA coordinator, worked in the relief effort and vividly remembers the hardship. CHOI JONG-SOO, FORMER COORDINATOR, YMCA BUSAN: "There were about two to three hundred people staying at the YMCA building which was only three stories high, I recall how the building smelled really foul and that smell still haunts me. Why the bad smell? Because there was only one bathroom in the entire YMCA and the garbage began piling up just outside the building." South Korea's then President Rhee Seung-man moved his office along with other key government bureaus to Busan. The city became Korea's provisional capital city during war, continuing in that role until the truce was declared three years later. The building that served as the President's residence in Busan is now a memorial hall, featuring Rhee's office, books, official documents and some of Rhee's personal belongings. YOO HYEON, CURATOR, BUSAN MODERN HISTORY MUSEUM: "This was President Rhee's living room. Here, he held daily meetings with government and military officials and made important decisions like revising the Constitution. The vice president and ministers were mostly appointed in this room during the war period." Despite the historical significance of this place, today it stands as a forgotten remnant of a war. But it's a visible reminder for Koreans of their divided country and the turbulent time in the past. Kang Min-ji, Arirang News. 7 Title: Decreasing Busan Population With the industrial boom during the 1970s and 80s, Busan evolved into one of the world's largest shipping centers. Now, the city is poised to do MORE, to broaden its identity and to grow higher. Kim Ming-jung reports. In the last decade, the population of Busan has fallen 5 percent, to 3 million 600,000 people. Just in the second quarter of this year, the National Statistical Office says, 1,200 more people left Busan. By 2030, the population is expected to drop to a little over 3 million. Young people are turning their back on Busan, seeking better educational and job opportunities in and around Korea's capital Seoul, in the north of the country. RECORDED: "A lot of my friends want to go to Seoul, and so do I. Busan may be the second-biggest city in Korea, but if you compare it to Seoul, the differences are obvious. I want to live and work in a bigger city." Seoul IS bigger? Four times bigger. It is home to the country's top schools but as importantly it is where Korea's leading high-tech companies have their headquarters and do their hiring. KIM MIN-JUNG, REPORTER: To compete, Busan has recognized it needs to do more. With such events as its well-regarded international film festival held in the fall and the current APEC gathering of economic leaders, the city is putting forth a major effort to shine. The goals of an international forum like APEC may be abstract to Busan's young people, but they are feeling the effect. RECORDED: "Busan used to be provincial, but with the hosting of an international film festival and other high-profile events, Busan is being exposed to international spotlight, so these days, I think Busan is as good as Seoul." This is the hope of the city, to GROW again, to become a place that embraces more than commerce. A place that can live up to its motto -- the city of tomorrow. Kim Min-jung, Arirang News, Busan. 8 Title: Interview with Dr. Robert Mundell One of the prominent figures attending this year’s 2005 APEC Investment Opportunities is Dr. Robert Mundell. Dr. Mundell is a 1999 Nobel Prize laureate for economic science. He won the prestigious award for his work on global currencies and trade balances. This year he shared his ideas of creating a fixed exchange rate zone in Asia. Our Lee Jung-hwa sat down with him to share his perspective on other issues. LEE JUNG-HWA, REPORTER: Dr. Mundell, Thank you for your time. Do you think the U.S. pressure on China is fair? ROBERT MUNDELL, PROFESSOR OF COLUMBIA UNIVERSITY: No, I think that it’s certainly bad for China to have a big change in its exchange rate and I don’t think it’ll help at all the United States. It’s not addressing any major problems of the United States. Because whatever China does with its exchange rate and I hear on the news that it said that President Bush is going to ask President Hu to increase the rate at which the dollar is depreciating or the Chinese currency is appreciating a little faster, whatever change its feasible to make in this connection would have no impact on the U.S. current account deficit. The U.S. current account deficit is caused by other factors I think it is wrongheaded, it’s the wrong move and the U.S. has been wrong in this issue LEE JUNG-HWA, REPORTER: Japan, China, Taiwan and Korea hold unprecedented U.S.-dollar reserves. Does this pose a risk to the world trading system? ROBERT MUNDELL, PROFESSOR OF COLUMBIA UNIVERSITY: I don’t know if I would call it a risk, but they certainly hold a now, a lot of power in the system. Because these four or five countries hold more than half the world’s foreign exchange reserves mainly in dollars. So they have an impact by what they do with their dollar holdings, they can have a big impact on exchange rates. Is that a risk? It would be if they use it in a way that would be harmful. LEE JUNG-HWA, REPORTER: What would your advice be to the central bankers of these countries? ROBERT MUNDELL, PROFESSOR OF COLUMBIA UNIVERSITY: About the holding of the reserves that these central banks have, every country that holds these reserves bought them, they made a decision to buy them. The alternative would have been that their currencies would have gone up, so they bought them to prevent their currencies from going up. I think that these countries, what they should do is move those reserves to higher yielding assets, like government bonds, that yield four percent now. You could ask, should those countries shift their dollars into euros or into gold? I wouldn’t advise them right now to shift to gold, because gold is already at a very high price historically. But if it dropped to below a dollar ten, the Euro I think would be a good investment. LEE JUNG-HWA, REPORTER: What’s backing up the dollar, why should they have faith? ROBERT MUNDELL, PROFESSOR OF COLUMBIA UNIVERSITY: Well the dollar has been, one of only two currencies, two major currencies in the world that’s never had a currency reform in the past 200 years. One is the pound sterling the other is the U.S. dollar. The U.S. economy, the dollar area accounts for 30 percent of the world economy. And the U.S has a stable price level. So the dollar area including some other countries is 30 percent or more of the price level. So if a country like China or Korea keeps its currency stable in terms of that currency it is keeping it stable in terms of 30 or 35 percent of the world economy. And this is far better than keeping its currency stable in terms of the domestic basket of goods. LEE JUNG-HWA, REPORTER: Thank you for your time. Dr. Mundell 9 Title: Essay Contest That Bridge Differences Two months ago, APEC organizers sponsored an essay contest to help raise public awareness about the upcoming conference. Well the winners were in Busan, to claim their prizes, and our reporter Sung Tae-kyung caught up with some of them, just before the awards ceremony. "About Precious Friendship" was the title of Ms. Ko Jin-sook's essay, which took first prize in APEC's International Essay Contest. Describing what she learned while participating in a project with an Indonesian school, the teacher from Korea's Jeju Island says the key to APEC's success is believing that we are all better off sharing. KO JIN-SOOK, TEACHER: "For all of us to live in harmony, we must share our advanced technologies with underdeveloped countries who need them. Being here at APEC makes me believe strongly in this that we have to share more, to truly achieve globalization. For her efforts, she won 1,500 U.S. dollars. SUNG TAE-KYUNG, REPORTER: "APEC is not all about political and economical big shots arriving here at Busan. Through this essay competition, ordinary citizens were given a chance to express their fresh ideas on the future of APEC." The contest saw 184 participants from 15 APEC member economies competing, with six of them, being awarded with prizes. Many focused on liberalization of the global market, the effects of greater free trade, and sought to APEC's role. NG PIN QUAN, SINGAPOREAN: "My essay was about trade liberalization and Chinese philosophy because as a libertarian I have a great interest in the Austrian and Chicago school of economics. And I have a vested interest in market liberalization as a whole." But for many others, it was a chance to experience a wider world and bridge the differences between, different nations and individuals. KIM KI-KYEONG, TEACHER: "I felt when I arrived here there were lots of people and there was a very good chance to meet some participants who wrote the essay contest and we could share our ideas together so I could feel I'm a very special person here." While APEC brings world leaders together for three days of meetings, the conference also wants to be down to earth and touch the lives of ordinary citizens. Sung Tae-kyung, Arirang News, Busan. 10 Title: S. Korea to Abstain from N. Korea Human Rights Vote In other news today -- South Korea says it will abstain from voting on a U.N. resolution critical of North Korea's human rights record. The European Union-backed resolution is expected to be put to vote on Thursday morning U.S. time at the U.N. General Assembly in New York. The South Korean government says it will express concern over North Korea's human rights record. But Seoul says it will also point out that issue should be handled within the overall context of its so-called "Sunshine" policy of reconciliation with Pyeongyang. Relations between the two Koreas have warmed significantly following a landmark summit in 2000. The vote will be the first time a resolution on North Korea has come up before the UN General Assembly. 11 Title: Chinn Confirms First Human Bird-Flu Cases We turn to China now where health authorities have confirmed the first human cases of bird flu infection in the country. Two people have already died from the bird flu. So the government has enhanced its efforts to prevent and control the outbreak. Chang Yeo Jeong has the report. China's Health Ministry confirmed its first three human cases of bird flu on Wednesday. The ministry said bird flu took the lives of a 24-year-old woman in Anhui province, and a 12-year-old girl in Hunan province. The girl's nine-year-old brother also fell ill from bird flu, but later recovered. Ministry officials explained, all three people are known to have been in close contact with infected chickens. Both regions had bird flu outbreaks in poultry in the past month, while China had 11 outbreaks during the same period. These cases are examples of what health experts have been worried about the potential for the H5N1 strain of bird flu to spread and mutate, from chicken to human, and eventually from human to human. However, a World Health Organization representative in Beijing says such cases come as no surprise. The representative pointed out that the bird flu virus can survive longer in the winter, when it's cold. So the WHO representative warned that China is vulnerable to bird flu, especially since it has the world's biggest poultry industry, and has three of the world's major bird migratory routes passing through it. Also on Wednesday, China's General Administration of Quality Supervision, Inspection and Quarantine issued an emergency circular, ordering inspectors at ports of entry and exit to step up efforts to prevent human infection of bird flu. Chang Yeo Jeong, Arirang News. (VIEWFINDER -- TITLE "FIREWORKS" -- CAMERA: KIM WU-JUNG -- PLACE: GWANGANRI BEACH, BUSAN) 12 Title: Weather Forecast for Friday, November 18th It’s been a clear day in Seoul as well as other parts of Korea. Cold, but clear. There really isn't much to tell you except the fact that the relative humidity levels are very low. It’s very dry out there. So make sure to pack some lotion for the low humidity levels. It will be clear to partly cloudy in Korea. Some clouds but not much. Dokdo has been plagued with rain for the last few days and it should continue tomorrow as well. Our lows tomorrow. Minus 1 in Seoul, 4 in Gangneung, 3 in Daejeon. Gwangju at 0 and Jeju at a comfortable 8. For those of you still at the APEC you'll face morning lows of 4 degrees. Highs are going to rise just a tad bit. 9 in Seoul, 11 in Gangneung. 10 in Daejeon and Jeju and Busan will get up to 14 degrees. Well that's about it! If you have a humidifier, its time to get that out. It's still cold season and under these dry conditions you might have a harder time if you do have a cold. That's our key word of the day. Humidifier. Here's your extended forecast. (APEC NEWS CLOSING) AHN CHAK-HEE, ANCHOR: And that does it for Arirang News on this Thursday. We thank you for watching and hope you'll join us again same time tomorrow. (APEC NEWS ENDING)