In 1999, figures show a halt in the decline in the economy and availability of food. "They'll break even this year," said an unnamed U.S. official quoted in a January 6 San Francisco Chronicle article. "It will be zero percent growth, but at least it won't be negative."

The article, titled, "Surprising North Korean Recovery Dashes Hopes for Reunification," has a tone of disappointment that the country did not "implode."

It says that an improving economy, shoring up of north Korea's armed forces, more aid from China, and improved diplomatic relations with several governments means that "the withdrawal of 37,000 U.S. troops from south Korea...has been deferred indefinitely" by Washington.

The nation's annual demand for grain is nearly 8 million tons, about half needed for human consumption.

In 1996, the nation's grain output fell to 2.5 million tons. The hope by U.S. and south Korean officials was the economic disaster would cause the Democratic Peoples Republic of Korea (DPRK) to collapse, opening the way for a takeover by Washington and the south Korean regime it backs.

Since the first signs of shortages and an international appeal by the DPRK for food aid, Washington has obstructed international aid. The Clinton administration has used food as a weapon, demanding Pyongyang first join talks with Seoul and cease work on nuclear arms and long-range missiles.

The history of the Korean peninsula since 1950 has been shaped by the war carried out by the U.S. government against the Korean people from 1950–53. U.S. forces leveled much of the country through massive bombing, especially in the north. They destroyed cities and most of the industrial infrastructure of the north, and systematically bombed dikes to destroy crops and cause flooding.

In order to impose the division of the country, Washington suppressed popular uprisings in the south. Nearly four years of slaughter left 3.5 million civilians dead. Ever since the armistice in 1953, Washington has maintained 37,000 troops and heavy weaponry in the south, including nuclear weapons.

In addition to economic progress, north Korea has made strides in normalizing diplomatic relations with a number of countries. At the beginning of the year Italy announced it was opening relations with north Korea, the first Group of Seven industrial nations to do so.

Other European nations with which it has formal relations are Sweden, Finland, Denmark, Austria, and Portugal. Japan lifted sanctions and opened negotiations intended to establish diplomatic relations last December.

On the eve of talks between the governments of north Korea and the United States, scheduled for Berlin on January 22, Washington conducted an antimissile test in the Pacific amid charges that north Korea is a "rogue state."

In response, the north Korean government declared it is reconsidering its moratorium on missile testing.

The Korean Central News Agency quoted a north Korean foreign ministry spokesman who said, "What matters is the U.S. assertion that such a (testing) drive is intended to cope with a nonexistent 'missile threat' from the DPRK and other countries."

North Korea agreed to a moratorium on missile testing in September.  
 
 
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