For the Love of Money

From whiskey to nuclear secrets, North Korea plays a remarkably entrepreneurial role in international affairs for a Communist regime.

BY SIMON HENDERSON | JULY 7, 2011

Pakistan and North Korea have been involved for decades in a secretive trade: The Pakistani military acquired missiles from North Korea, and Pyongyang, as part of the deal, gained access to Pakistan's uranium enrichment centrifuges. Now, new details have emerged that reveal how this relationship was smoothed by money. The Washington Post published revelations today, attributed to me, that top-level North Korean officials bribed Pakistani military officials with over $3 million in exchange for the nuclear technology. This disclosure offers fresh details about how nuclear weapon secrets have proliferated across the globe -- and provides a unique insight into the dangerous consequences of the hermit kingdom's "entrepreneurial" role in world affairs.

The story, in short, is this: Abdul Qadeer Khan, the founder of Pakistan's nuclear weapons program, provided me with a letter written in 1998 by a high-ranking North Korean official, which laid out payments of cash and jewelry intended for two Pakistani generals in exchange for nuclear know-how. Khan, who I have been in correspondence with since the early 1980s, also provided a written narrative that described how he personally handed the money over to one of the generals. While Pakistani officials maintain that the letter is a forgery, both senior U.S. officials and the former International Atomic Energy Agency official in charge of investigating Khan said that the documents accord with their understanding of the corruption that fueled Pakistan's crucial assistance to North Korea's nuclear weapons program.

But the larger issue of why North Korea has been so enthusiastic about acquiring, and subsequently exporting, nuclear technology remains unanswered. What motivated North Korea to reportedly build a plutonium-producing nuclear reactor for Syria -- a project destroyed by Israeli jets in 2007? Why has Pyongyang sold missiles to Iran and may be helping the Islamic Republic with its nuclear program -- perhaps with the P2 centrifuge enrichment technology that it revealed last year?

You don't have to be a specialist in East Asia, or on North Korea's "Juche" ideology of self-reliance, to know the answer. It is simple: cash. American diplomats might go on overseas postings determined "to build and sustain a more democratic, secure and prosperous world," as the State Department's mission statement puts it, but their North Korean counterparts go to make money. Indeed, they have to. It's partly because of their national ideology, and partly because of practical necessity. And it's not just about boosting Pyongyang's foreign exchange reserves.

I remember, when living in Pakistan as the BBC and Financial Times correspondent in 1978, a conversation I had with an American diplomat at the U.S. embassy in Islamabad just before the arrival of North Korean Vice President Pak Sung Chul on an official visit. I asked the diplomat, who happened to have an impish sense of humor, what would be a good question to ask Pakistani officials about North Korea.

"Why don't you ask whether North Korea will find another way of funding its embassy?" he suggested, explaining that Pyongyang did not give the embassy enough money to function. Instead, its diplomats would buy duty-free alcohol from diplomat-only stores, and then sell it at vast profit on the local black market.

Islamabad, as the capital of an Islamic state, was dry -- but it was also thirsty. And the North Korean diplomats' bootlegging scheme was a very lucrative business. It drove the Pakistani government crazy, but there was little they could do about it: North Korea was an important provider of artillery and munitions for the Pakistani army.

Cancan Chu/Getty Images

 

Simon Henderson is the Baker fellow and director of the Gulf and Energy Policy program at the Washington Institute for Near East Policy.

HTGMF101

4:20 AM ET

July 8, 2011

Missile Cooperation earlier

I did some research and found that it wasn't first interaction between Korea and Pakistan.

North Korea started missile cooperation with Pakistan in 1992. Within Pakistan, KRL was one of the laboratories responsible for missile research and development of the Ghauri missile with North Korean assistance. This cooperation probably established the connections that Khan could have used to transfer nuclear technologies. How To Get Muscles Fast However, very little is known about when any nuclear transfers began, what nuclear components might have been obtained by North Korea, and whether or not the Pakistani government was privy to Khan’s activities.

And through 90's nuclear network was expanding in Korea. And I believe Khan has been under house arrest since 2004, when he made a public confession in Pakistani television.

 

BILLG

5:13 PM ET

July 8, 2011

Maraging Steel

I didn't know maraging steel was treated by authorities like it was subject to ITAR. Its really strong steel, but I didn't think there was any big secret in how it was made and am actually kind of surprised that the North Koreans haven't figured that out.

 

POLITICALAGENDA

2:44 PM ET

July 13, 2011

So North Korea Gov Has Good Capitalist Instincts!

I like it - a dedicated comminist regime has rather good capitalist instincts when it comes to state money. Seems to be one of the least likely countries to ever overthrow its rulers though. Not much sign of an Arab Spring, maybe an Arab Christmas but I suspect not this year or the next one.

 

LORD NELSON

2:54 AM ET

July 15, 2011

FAKE?

Is the letter really fake. Why does someone not unearth the truth if any in the other allegations? A senior Paki general was heard stuttering after a few cold ones in Washington recently that one of those mentioned by Dr Khan took $ 68 million to buy tanks too. Could this be true? I cant believe this as nukes must cost more than tanks.

 

WGALLEGO680

4:16 PM ET

August 5, 2011

For the Love of Money

From whiskey to nuclear secrets, North Korea plays a remarkably entrepreneurial role in international affairs for a Communist regime. Brazil and Argentina were pressured by the U.S. in the 1970-1980s to abstain from developing nuclear weapons. Today, their national defense communities wish they could have developed them, to "dissuade" NATOand the U.S. from "expanding" into the South Atlantic and South America. Now the U.S. is building bases in Colombia on Brazil's border and the U.S. reactived its "South America Fleet" in 2008 a dedicated server I didn't know maraging steel was treated by authorities like it was subject to ITAR. Its really strong steel, but I didn't think there was any big secret in how it was made and am actually kind of surprised that the North Koreans haven't figured that out..