ID :
27782
Fri, 10/31/2008 - 18:19
Auther :
Shortlink :
https://www.oananews.org//node/27782
The shortlink copeid
S. Korea, U.S. struggle to reach deal on sharing defense cost
By Lee Chi-dong
SEOUL, Oct. 31 (Yonhap) -- The United States is demanding South Korea pay half of the US$3 billion in annual non-personnel stationing costs (NPSC) to maintain its troops here, a government official said Friday after the latest round of negotiations on the issue.
"The U.S. claims the total annual spending for the troops reaches $5 billion. It
demands South Korea share the burden for half of the non-personnel stationing
costs, excluding $2 billion in wages for U.S. soldiers," the official said on
condition of anonymity. The two nations ended the fourth round of talks over how
much Seoul should pay for the presence of U.S. troops the day before.
South Korea provided the U.S. with 725.5 billion won in cash last year and is
expected to pay the same amount this year with an adjustment for inflation under
the Special Measures Agreement (SMA). When the deal was reached in late 2006, one
dollar was worth about 950 won. The exchange rate now hovers at around 1,400 won
against the greenback.
Seoul pays the share in won instead of dollars as the money is largely used to
pay wages for Korean employees at U.S. military bases and to construct
facilities here.
"South Korea's annual contributions to the non-personnel stationing costs
comprises direct cash aid and indirect assistance, such as rent for military
bases, public fees, and tax breaks, namely fixed costs," the official said.
The U.S. argues South Korea's share accounts for 42 to 43 percent of the NPSC and
should be raised to 50 percent.
South Korea, however, dismisses the U.S. calculation, saying it is difficult to
measure its indirect contributions.
"Regardless of the percentage of the NPSC, we are pushing to set a fair and
appropriate portion in consideration of our financial capacity," the official
said.
In the most recent round of negotiations held in Seoul, the official added, the
two sides laid out a framework for a package deal to adress contentious issues.
"I think we passed the halfway point. The next round of talks will be held in
late November," he said. South Korea hopes to strike an agreement by the end of
this year.
Another sticking point is whether to allow the U.S. to use the stationing cost
budget for a multi-trillion-won project to relocate the U.S. Second Infantry
Division to a consolidated base in Pyeongtaek, 70 km south of Seoul.
Under the 2004 Land Partnership Plan (LPP) deal, the U.S. is required to pay all
costs for the relocation of the front-line division, while South Korea is to
shoulder the cost of moving the Yongsan Garrison in central Seoul to Pyeongtaek.
The U.S. claims there should be no problem with funneling SMA funds to the base
relocation as construction of new facilities is one of the main purposes for
using the SMA.
South Korea is also seeking to provide the U.S. military with funds and materials
on a case-by-case basis rather than paying a lump sum, a bid to enhance
transparency of where taxpayers' money is used.
About 28,500 U.S. soldiers are stationed on the Korean Peninsula as a legacy of
the 1950-53 Korean War. South Korea started sharing the costs for maintaining the
troops in 1991. The two sides have since held SMA talks every two or three years.
SEOUL, Oct. 31 (Yonhap) -- The United States is demanding South Korea pay half of the US$3 billion in annual non-personnel stationing costs (NPSC) to maintain its troops here, a government official said Friday after the latest round of negotiations on the issue.
"The U.S. claims the total annual spending for the troops reaches $5 billion. It
demands South Korea share the burden for half of the non-personnel stationing
costs, excluding $2 billion in wages for U.S. soldiers," the official said on
condition of anonymity. The two nations ended the fourth round of talks over how
much Seoul should pay for the presence of U.S. troops the day before.
South Korea provided the U.S. with 725.5 billion won in cash last year and is
expected to pay the same amount this year with an adjustment for inflation under
the Special Measures Agreement (SMA). When the deal was reached in late 2006, one
dollar was worth about 950 won. The exchange rate now hovers at around 1,400 won
against the greenback.
Seoul pays the share in won instead of dollars as the money is largely used to
pay wages for Korean employees at U.S. military bases and to construct
facilities here.
"South Korea's annual contributions to the non-personnel stationing costs
comprises direct cash aid and indirect assistance, such as rent for military
bases, public fees, and tax breaks, namely fixed costs," the official said.
The U.S. argues South Korea's share accounts for 42 to 43 percent of the NPSC and
should be raised to 50 percent.
South Korea, however, dismisses the U.S. calculation, saying it is difficult to
measure its indirect contributions.
"Regardless of the percentage of the NPSC, we are pushing to set a fair and
appropriate portion in consideration of our financial capacity," the official
said.
In the most recent round of negotiations held in Seoul, the official added, the
two sides laid out a framework for a package deal to adress contentious issues.
"I think we passed the halfway point. The next round of talks will be held in
late November," he said. South Korea hopes to strike an agreement by the end of
this year.
Another sticking point is whether to allow the U.S. to use the stationing cost
budget for a multi-trillion-won project to relocate the U.S. Second Infantry
Division to a consolidated base in Pyeongtaek, 70 km south of Seoul.
Under the 2004 Land Partnership Plan (LPP) deal, the U.S. is required to pay all
costs for the relocation of the front-line division, while South Korea is to
shoulder the cost of moving the Yongsan Garrison in central Seoul to Pyeongtaek.
The U.S. claims there should be no problem with funneling SMA funds to the base
relocation as construction of new facilities is one of the main purposes for
using the SMA.
South Korea is also seeking to provide the U.S. military with funds and materials
on a case-by-case basis rather than paying a lump sum, a bid to enhance
transparency of where taxpayers' money is used.
About 28,500 U.S. soldiers are stationed on the Korean Peninsula as a legacy of
the 1950-53 Korean War. South Korea started sharing the costs for maintaining the
troops in 1991. The two sides have since held SMA talks every two or three years.
