SUBCOMMITTEE ON ASIAN AND PACIFIC AFFAIRS LEE H. HAMILTON, Indiana WILLIAM S. BROOMFIELD, Michigan CHARLES P. WITTER, Subcommittee Staff Consultant CONTENTS LIST OF WITNESSES Porter, Hon. William J., U.S. Ambassador to Korea.... Michaelis, Gen. John H., commander in chief, United Nations Com- mand; commander, U.S. Forces, Korea, commanding general, 8th Lekson, Maj. Gen. John S., U.S. Army, chief, Joint U.S. Military As- Ranard, Donald L., Director, Korean Affairs, Department of State__ Michaelis, Gen. John H., commander in chief, United Nations Com- mand; commander, U.S. Forces, Korea; Commanding general, 8th Brown, Hon. Winthrop G., Deputy Assistant Secretary of State for Porter, Hon. William J., U.S. Ambassador to Korea_- Scalapino, Robert A., professor of political science, University of Cali- Ranard, Donald L., Director, Korean Affairs, Department of State__ Flanz, Gisbert H., professor of political theory and comparative MEMORANDUMS SUBMITTED FOR THE RECORD United States-Republic of Korea joint statement on U.S. troop reduction Countries with military presence in Korea as of May 31, 1971.- Ministry of National Defense, Republic of Korea civilian pay scale AMERICAN-KOREAN RELATIONS TUESDAY, JUNE 8, 1971 HOUSE OF REPRESENTATIVES, SUBCOMMITTEE ON ASIAN AND PACIFIC AFFAIRS, Washington, D.C. The subcommittee met at 2 p.m., pursuant to call, in room 2255, Rayburn House Office Building, Hon. Cornelius E. Gallagher, chairman of the subcommittee, presiding. Mr. GALLAGHER. The subcommittee will come to order, please. Today, we begin a series of hearings concerning American-Korean relations and a review in depth of current developments in Korea. The hearings today and tomorrow are in executive session with administration witnesses. On Thursday, June 10, we will have in open session two public witnesses: Prof. Gisbert Flanz of the New York University; and Prof. Robert A. Scalapino of the University of California. As I stated when these hearings were announced, it is my hope that information will be produced to let us know exactly how far Korea has come from the dismal days of the early fifties and how American policy can best assist Korea to meet the responsibilities of its emerging role as a leader among the free nations of Asia. The subcommittee is indeed fortunate in having as its principal witness today a person who is highly knowledgeable in all aspects of the economic, political, and military conditions in Korea-Ambassador William J. Porter. Ambassador Porter is accompanied by Gen. John H. Michaelis, who will be the principal witness tomorrow, and will testify concerning the military and security problems facing Korea today. Also present are Deputy Assistant Secretary of State Winthrop G. Brown, and Maj. Gen. John S. Lekson, Chief of the Joint U.S. Military Assistance Group in Korea, along with other staff members from the Departments of State and Defense. Ambassador Porter has a prepared statement which he will summarize for the subcommittee. Mr. Ambassador, General Michaelis, Mr. Brown, and other distinguished witnesses accompanying you, on behalf of the subcommittee and myself, we welcome you back to Washington after your long trip. (1) STATEMENT OF HON. WILLIAM J. PORTER, U.S. AMBASSADOR TO KOREA Ambassador PORTER. Mr. Chairman, it is a particular pleasure for me to appear before this subcommittee, many of whose members are close observers of the Korean scene, and to give you this report on the state of our relations with the Republic of Korea and the progress that country continues to make. The story of the Republic of Korea has now become well known. throughout the world as that of a people who literally picked themselves up from the ruins of war and who are forging a bright future for themselves and their children. It is a story of close association with their American friends, who sensed in that people the brains, energy and determination which could achieve such a miracle if only given the opportunity to try. By a series of decisions over a period of many years, the United States made it clear that the people of Korea would have that opportunity. The support we have given and the faith we displayed in them provided the basis for the enduring friendship and understanding which has developed between our two peoples. That it has not been a one-way friendship, the testimony before this subcommittee will no doubt make clear. The Republic of Korea currently has a population of approximately 32 million people, who live in an area about the size of the State of Indiana. They possess few natural resources except the brains and energy which I have already noted, and which have enabled them to develop their commerce, by importing and converting raw materials into products saleable throughout the world. From an estimated export level of $30 million in 1960, the Korean economy sent a billion dollars worth of goods abroad in 1970. The figures are impressive, but they should not be taken as indicating that the Korean economy is in balance. The cost of equipping Korean industry has been great, and currently the burden of debt which the Korean Government must service weighs heavily on the economy as a whole. Korea is still definitely in the period of equipping herself, but a combination of careful management and internal stability, for both of which President Park can justly claim much credit, has given sound reason to hope, and even to predict, that the country has a bright future. The encouragement we derive from Korean success has a practical side, in that it has made it possible for us to lessen our contribution to that country. For example, direct cash support for the Korean budget has disappeared from our aid escort; investment loan funds provided by the U.S. Government have sharply diminished in favor of funds provided on normal commercial terms by regular sources of international finance; Korea has undertaken to settle her war surplus property debt on a regular schedule satisfactory to us; Korea has begun to assume the costs of certain items hitherto provided through our military aid programs. By the end of fiscal year 1971, the United States will have provided somewhat over $5 billion in bilateral economic assistance: $2.9 billion was provided through AID or its predecessor agencies and $1.3 billion in Public Law 480 assistance. Other programs, mainly of a relief na |