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Mark O'Neill

An American could be the police chief of the new special administrative region which North Korea is creating on its western border with China, its chief executive said yesterday.

Yang Bin was speaking in an interview ahead of receiving his letter of appointment yesterday evening from Kim Yung-nam, president of the presidium of the Supreme People's Assembly, who ranks second in the national hierarchy, after leader Kim Jong-il.

Mr Yang gave more details of the SAR that will be set up on 132 sq km of land in Sinuiju that borders Dandong, in China's Liaoning province. He said the area's population of 500,000 would be moved, most to a US$50 million (HK$390 million) new city the North Korean government planned to build outside the wall that will mark the boundary of the SAR.

All existing factories, homes, offices and other structures within the SAR area will come under Mr Yang's jurisdiction.

'Apart from buildings of historical interest, I plan to demolish everything,' Mr Yang said. 'Most of the factories are outdated.'

During a transition period, some people will be allowed to continue working in the plants.

The SAR will have two sectors - a port and an urban area 30km up the Yalu River, which will be linked by an expressway. Both will be separated by a wall from the rest of North Korea.

Mr Yang estimated about US$1.5 billion would be needed to build the SAR infrastructure, including the expressway, about US$1 billion to upgrade the port to receive ships of up to 300,000 tonnes and about US$200 million to upgrade the airport.

The SAR will initially buy power from Dandong and build its own plants later. It will also invite foreign firms to set up a telecommunications system. All finance will have to come from private investment, and Mr Yang plans to invite tenders for the work.

'I have had interest already from Japanese and Taiwanese firms for the port but cannot give you the names,' he said.

Under the SAR's law, the North Korean government is responsible for defence and foreign policy, meaning its soldiers will patrol the border with China, while the SAR government will be responsible for internal security.

The SAR will recruit its own police force and retain some members of the existing force, since many of the new SAR residents will be North Koreans.

'I will pick a foreigner as the police chief,' Mr Yang said.

Asked if he or she could be an American, he replied: 'That is not impossible. It depends on whether it could help the SAR.'

Mr Yang said he was approached by the North Korean side in January with proposals for the SAR. 'They did not seek another person. It was the idea of Kim Jong-il. They had seen how I have helped to develop agriculture in North Korea,' he said. He put his personal assets at US$900 million, ranking him the second-richest in China after the Liu Brothers of the Hope Group.

Mr Yang is a Dutch citizen, and his family lives in the Netherlands.

Asked if he would become a North Korean, he said he could consider this, if it was good for the SAR. 'This is allowed by Dutch law. But an independent identity is perhaps better.'

China welcomed the creation of the enclave yesterday, but stopped short of overtly endorsing the experiment.



American may head police force in North Korean SAR