Seoul, Washington conclude talks on sale of U.S. war reserve

By Byun Duk-kun
SEOUL, Oct. 7 (Yonhap) -- South Korea will purchase nearly half of U.S. munitions stockpiled here under a reserve program for about one tenth of their original price, Defense Ministry officials said Tuesday.

The deal, however, will not involve any transfer of hard currency, according to
ministry officials, as the sides agreed Seoul will pay with labor and services
for U.S. Forces Korea (USFK) in lieu of cash.
"It is a very good deal for us, which will not cost us any cash," an official
said, asking not to be identified.
Under the deal, Seoul will take over about 259,000 tons of munitions, close to
half of U.S. munitions kept here under the War Reserve Stocks for Allies (WRSA)
program, for just over 271 billion won (US$213 million).
"The price will be paid in labor and transportation needed to ship the rest of
the WRSA munitions out of the country," the ministry official said.
Washington decided in 2006 to terminate the multi-billion dollar war reserve
program in South Korea and to either ship the munitions out or sell them to South
Korea by 2009. The original price for the U.S. munitions stockpile is said to be
worth some $3 billion.
The deal is expected to be sealed next Friday when South Korean Defense Minister
Lee Sang-hee and his U.S. counterpart Robert Gates meet in Washington for annual
defense ministerial talks, known as the Security Consultative Meeting, according
to ministry officials.
South Korea will take over about 100 different types of munitions compatible with
weapons systems here, while the rest will either be used by USFK or shipped out
in the near future.
The munitions scheduled to be taken out of Korea include cluster bombs, which the
U.S. kept in South Korea as a deterrent against North Korea, the officials said.
The U.S. has agreed to keep the bombs, which eject a number of smaller bomblets
upon explosion, in Korea until 2024, they said.
bdk@yna.co.kr
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