| Look carefully: this is a true crack in the wall. |
According to sources in Shinuiju, North KoreaÂ’s food import system has shown some changes since early February. It is now allowing cash transactions for food imports, which was not permitted in the old interlocked import-export system. The old system only allowed importing food using the revenues generated from exports. However, these restrictions were lifted in early February, and imports are now being made available through cash transactions.
As a result, Shinuiju harbor is witnessing a mass importation of rice and flour from China for the first time. The amount of food imports, which started to increase in early February, has reached its peak in late February and early March, importing 800 to 1,000 tons of rice and flour everyday. Prior to the changes, an average of 500 tons of food was imported daily.
The sources also say that three to four cargo ships enter into ShinuijuÂ’s military-appointed harbors, such as the Dong Yang harbor (exclusive warship for the Escort Command) and the Kang Sung harbor (exclusively for the Ministry of the PeopleÂ’s Armed Forces), transporting daily imports. The amount of food these ships carry everyday reaches from 800 to 1,000 tons. As the rations are disembarked, they are immediately purchased by the awaiting wholesale traders and distributed throughout the country.
| So food comes into the military harbors and doesn't immediately go the military ... |
The importers purchase rice for $470 per ton and flour for $480 per ton, and resale them for $530 and $540, respectively, to the wholesalers. Included in the expenses are operating fees, port usages, and customs fees.
| That's almost .. capitalistic ... |
There are several important features in this newly ratified import law.
First, they are allowing unregulated cash transactions in food purchases, which were only permitted during the latter part of the “March of Suffering” in 1997. North Korea’s old system only allowed food imports to be made with export revenues. Food is now being imported regardless of export income, through unregulated cash transactions. Secondly, it is the first time since the “March of Suffering” that direct wholesale of food rations are taking place at the ports. More importantly, the government is not regulating such practices.
| Either the government realizes that food must come in or the country is going to blow up, or Kimmie isn't in complete charge anymore and somebody out there is deciding to let food in. |
Finally, there had been strict historical regulations of rations flowing out into other regions. In other words, one regionÂ’s ration supplies were strictly supervised so that it does not flow out into other provinces and municipalities. However, it is now being overlooked, resulting loose regulations of ration transportation and middlemen at ShinuijuiÂ’s Baeksa and Dal-lae river checkpoints in Jungjoo.
Sources say the demands for imported foods are so high, that 800 to 1,000 tons of daily imports sell out instantly.
| Here's a target of opportunity. Push more food imports this way, up to whatever the system will allow, and use the opportunity to grease some palms, gather information, and make friends. |
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