SAR Chief Executive’s “faux pas” at press conference
On September 24, almost all the influential newspapers and TV stations around the world reported the stunning news that North Korea had founded a Special Administrative Region in Sinuiju and promulgated its Basic Law.

[Itar-Tass in Seoul, September 24] Kim Jong II, the leader of North Korea, has made up his mind to demonstrate to the world that North Korea possesses the ability to carry out experimental economic reform. He has declared the establishment of the Sinuiju Special Administrative Region (SAR) in northwestern North Korea.

In establishing the Sinuiju SAR, North Korea is drawing on China’s concept of ‘One Country, Two Systems’ implemented in Hong Kong and Macau where these SARs have a certain degree of freedom in their economic and legal systems. But, after announcing that Sinuiju was ‘a state within a state’, North Korea has gone even further. The Sinuiju judiciary will be independent of the central government, and separate from legislative and administrative authorities within the SAR itself. Foreign residents will take part in the election of the SAR’s Legislative Council. Sinuiju will function as an entity in compliance with international laws and issue its own passports.

[China Newswire, 2:21 p.m., September 24] According to the BBC, North Korea has announced a new development regarding the Sinuiju Special Zone. Yang Bin, a Dutch-Chinese businessman, has been appointed as the Chief Executive of the Sinuiju Special Economic Region, which was established just last week.
At the press conference held in Pyongyang, the capital of North Korea, Yang Bin indicated that he plans to establish the zone, whose area is similar to that of Hong Kong, totally from scratch. At first, he will relocate more than 500,000 people from the 132-square-kilometer area bordering on China. In addition, he will establish a new legal system modeled on Europe’s. He plans to use elections to select and appoint legislators and administrators, and will hire foreign judges including Westerners.
According to foreign media, Sinuiju will be developed into a comprehensive international zone integrating finance, trade, commerce, industry, high technology, entertainment and tourism. Moreover, it has been specified clearly that this region will have authority over the development, use and management of its land until December 31, 2052.

Massive foreign media coverage of the SAR announcement and journalists’ subsequent heated pursuit of Yang Bin to Dandong made him exceptionally excited when he got back to Shenyang.
Around noon on September 25, I returned by car from Dandong to Holland Village. When I arrived at Yang’s villa, guests and friends were everywhere. There was Yang Bin, sitting on his living room sofa, clad in his usual white Crocodile T-shirt and light khaki casual pants. His cheeks ruddy from excitement, he was busy conversing with guests from the four corners of the globe.
“Guan, how come you didn’t make it to Pyongyang?” asked Yang Bin.
I didn’t know quite what to say. I smiled, sat down on a sofa seat vacated for me, and listened to people complimenting him on his new title. Guests flowed in, some just to congratulate him, others seeking business opportunities in Sinuiju.
In the evening, Yang Bin held a reception banquet in Tropical Rain Forest Restaurant by Swan Lake. As usual, I sat opposite Yang Bin at his table.
During the banquet, Yang Bin rose to sing the theme song from “Aspiration,” a popular TV series:

Year after year, I’d like to say that I was confused.
Seemingly real, seeming illusionary, it was hard to choose.
Sadness and happiness, separation and reunion, I experienced them all.
Why on earth was I so determined?
Who can tell me, was I right or wrong?
I just aspired to live sincerely.
Who can tell me, was I right or wrong?

His hoarse voice trembled with feeling and resignation that touched me deeply and aroused my sympathy. Having spent months with him, I was almost too intimate with him. So many times I had been there at his side as he inspected the work sites in his “Sandstorm” SUV in the early morning. He unleashed his anger on his staff, but implored the management of the construction company to get on with the projects in Holland Village.
I had accompanied him and his delegation to Pyongyang countless times, participating in the tough negotiations on the Sinuiju SAR and inspecting the status of the model high-tech agricultural zone in Pyongyang. I felt deeply his anger and unease when he was challenged by domestic and foreign media, and his anxiety and disappointment when the stock price of Euro-Asia plunged.
His living expenses were probably only a bit more than 100 yuan a day, including two meals. For him, a meal might consist of a small bowel of rice, two or three dishes such as stewed pork, pickled cabbage with green beans, pork with dried turnip, or pork with spicy dried bean curd. He didn’t like seafood and never changed his menu. The most expensive dish I ever saw him eat was steamed salted fish that could only be had from Guangdong, and cost a little more than 20 yuan a catty. The billionaire’s sole extravagance was four or five packs of State Express 555 cigarettes that he smoked daily.
At midnight he would waken me with a phone call and dispatch a car to bring me over to shoot the breeze. At his side would be just Shen Liang, his Hebei driver. I could sense how lonely he was, and the immense the strain he was under.
I’m not sure why, but I feared those midnight chats. Perhaps because in those moments I pitied him but felt powerless to help. In the daytime, he was a billionaire and a forceful man; at night, he was a lonely man. Many times, I opened my heart and gave him advice that displeased him.
I confided my concerns to close friends in Yang Bin’s “delegation.” “Guan,” they scoffed, “you must have faith that Yang is an extraordinary man! He is a smart man. Maybe he isn’t listening to us right now, but deep down he understands what’s right and what’s wrong. He knows how to move ahead.”
But I was skeptical.
On the morning of September 26, Yang Bin told me that many Chinese and foreign journalists had followed him from Dandong in the hopes of winning an exclusive interview. Bian Shou-Jie couldn’t handle all these requests, and Yang asked me to give him a hand. I agreed.
When I came to the third floor of the “Queen’s Palace,” (Euro-Asia’s office building in Holland Village), dozens of reporters from Japan, South Korea, the United States, Hong Kong and mainland China were already gathered there. I felt uneasy. There were even a few journalists sitting in Bian Shou-Jie’s office, waiting for their interview.
Bian Shou-Jie sighed with relief on my arrival. “Guan Shan, you’ve come at last. Give me a hand!” With little ado, he dismissed the South Korean reporters in his office. Then he told me that a press conference would be held on the morning of the 27th.
“Isn’t that inappropriate?” I was puzzled.
“Never mind. It’s President Yang’s decision. You’ll act as the media spokesman, and I’ll preside over the press conference. What theme shall we choose for the topic of the conference?”
Bian showed me the banner headline which had, in fact, already been drawn up: “Press Conference for the Chief Executive of the Sinuiju Special Administrative Region in the Democratic People’s Republic of Korea.”
I broke out in a sweat. This just wouldn’t do.
Bian Shou-Jie had studied in Japan, and served as vice-president of a Shenyang real estate company upon his return. At one point his firm was in a joint venture under the Euro-Asia Group, but when the venture ended he began working for Euro-Asia. He had no media experience whatsoever.
“Uh-oh, this will get us into trouble,” I fretted. Yang Bin was now a government official of North Korea. If he were to hold a press conference in China, he would need to obtain prior approval from the Chinese authorities.
“Has Tong Lian-Fa arrived?” I asked.
“He’ll be here soon.”
As Yang Bin’s biographer, I was just a guest here. I was not a member of the Euro-Asia Group management team, so I was in no position to comment on whether this approach was appropriate. Perhaps I could seek advice from Tong Lian-Fa, Yang Bin’s legal advisor who had helped draft Sinuiju’s Basic Law.
Predictably, Tong Lian-Fa was also concerned. So Bian Shou-Jie changed the name of the event to “Press Conference for the Sinuiju SAR.”
Tong and I still felt uncomfortable with this, but Bian Shou-Jie instructed his staff to craft a banner with this phrase.
I reviewed faxes received from journalists worldwide. Tong Lian-Fa and I drafted a set of standard responses to their questions and gave it to Yang Bin for reference. During the press conference, however, Yang Bin did not refer to it.
At 4 p.m. on September 27, dozens of journalists from all over the world gathered on the fourth floor of the Amsterdam Railway Station in Holland Village. Many were from China. Due to objections from Euro-Asia Group’s Vice-president Li Gang, and both Tong Lian-Fa and Weng Yong-Xi, Yang Bin’s political consultant, the banner headline drafted by Bian Shou-Jie was covered up at the last moment. But the banner was still hanging on the wall.
I accompanied Yang Bin to the conference room and intentionally took my seat, leaving an empty chair between him and me so I could take notes. Bian Shou-Jie sat immediately to Yang Bin’s right. He informed the guests that this conference was for President Yang Bin of Euro-Asia Group to meet with friends from media, and everybody could talk freely with President Yang.
Here is a transcript of the press conference with Yang Bin’s opening remarks followed by his answers to questions from several journalists:

Yang Bin: Everyone knows that I was appointed Chief Executive of the Sinuiju Special Administrative Region by the Supreme People’s Assembly of North Korea three days ago. I have sought this position for many years out of my feelings of sympathy for the people of North Korea. They are terribly poor. I was an orphan, I survived poverty, and now I am wealthy. But money means little to me. I am more eager for peace, for peace and development in Northeast Asia. As a Dutch-Chinese who has become the SAR Chief Executive, I do not seek personal benefits in this new role. I am simply an official with a fixed salary. I hope that I can help the North Korean people live better.
Many reporters would like an exclusive interview with me. But there are so many friends among you, and I am unable to entertain all these requests. I'd like to pass out a press release to everyone, and then open the session to questions.

Q: I am from the ‘21st Century Economic Report’. Could you please give us a detailed introduction to the Sinuiju SAR?
A: The Sinuiju SAR will be a free society. SAR law will mainly adopt Western law, including civil and criminal law, to protect individual freedoms and private property from infringement for a period of 50 years. After 50 years, the central government of North Korea will maintain the policy of protecting individual freedoms and private property from infringement. The SAR will implement the policies of a comprehensive, free market economy like those adopted in developed countries. It will ensure a free flow of people and adopt a visa-free policy for everyone. Citizens of North Korea will be issued visas by North Korea itself. Beginning this year, people can travel freely in and out of Sinuiju, and the movement of goods will be tax-free. Hard currencies used elsewhere can move freely in and out of the SAR.
Q: ‘Chosun Ilbo’, South Korea. In the SAR, will South Koreans be treated as other nationalities?
Yang Bin: Everyone is equal under Sinuiju SAR law. Moreover, you have a linguistic advantage. This is a piece of land that once belonged to your ancestors. The Sinuiju SAR will need a labor force of 200,000 to 300,000 people, mainly from North Korea. South Korea may become the largest investor in Sinuiju. We welcome entrepreneurs and bankers from South Korea to invest in Sinuiju.
Q: I am Hao Xiao-Ming from Hong Kong’s ‘Wen Weipo’. On the 26th, shares of Euro-Asia Agricultural Company were suspended by the Hong Kong Stock Exchange. What will happen to Euro-Asia Agricultural Holdings Company if you take on the position of the SAR Chief Executive?
A: Very good arrangements have been made. Euro-Asia Agricultural Holdings Company is the result of a decade of my efforts. It is like a child to me. I will make good arrangements for it. Please convey this message to all shareholders.
Q: I’m with Japan’s Kyodo News. May I ask when the visa-free entry policy will be implemented in Sinuiju? What will be the economic policies of the government of the Sinuiju SAR?
A: From the 30th, the day after tomorrow. The Sinuiju SAR is a free trade zone with the most preferential policies in the world at present. Import and exports are tax-free. People of any skin color and of any nationality can invest in Sinuiju. Our income tax rate is only 14 percent, versus 40 percent for Holland, 30 percent for China, and 15 percent for Hong Kong.
In legal terms, there is a need for impartiality. I am a Dutch citizen. I know the law there attaches great importance to impartiality. Therefore, I will choose a European to be the Chief Justice of the Sinuiju SAR. Our Police Bureau Director will also be someone who is not from either China or North Korea. Only a just society can provide an environment in which everyone can make money.
Q: I’m from the ‘China Business Post’. Could you introduce the investment plan, scale and timetable for Sinuiju?
A: It will attain an initial scale within five years, and will gradually develop into one of Northeast Asia’s loveliest metropolises within 10 years. The infrastructure will cost around US$100 billion, and the overall investment will total around US$400 billion.
I am just an official in the Sinuiju SAR on the government payroll. I will resign from most of the other positions I hold right now, including those related to business. In Sinuiju, I cannot engage in commercial activities. Since I will be in charge of the ‘Three Powers’, I won’t make investments. Let younger people come and establish their enterprises.
On the 24th when the BBC interviewed me in Pyongyang, I told them I would be the poorest SAR head in the world. Mr. Tung Chee-hwa had a net worth of HK$10 billion before he became the Chief Executive of an SAR, but I won’t even be taking a pair of pants to Sinuiju.
Q: I’m a reporter from South Korea. Do you have plans to visit South Korea?
A: I will meet business leaders in South Korea on October 7. Since the SAR will build a South Korea Industrial Park, out of respect for the traditions of the people of South Korea we would like to listen to the opinions of the business community there.
Q: In what capacity will you visit South Korea?
A: In my dual capacity.
Q: I am a reporter from Japan. Do you intend to visit Japan in the coming days?
A: I will visit Japan soon. Japan is very short of human resources and natural resources, while they are cheaply available in China and North Korea. North Korea’s opening up to the world will help link China and Japan. Northeast Asia will become the most promising area for future development. Sinuiju and Japan can be connected via a harbor tunnel. We can bring a ‘Northeast Asia Economic Circle’ into being through peaceful development. This is a joint matter for Japan, China, North Korea and South Korea.
Q: I’m with the ‘Hong Kong Economic Times’. May I know how much power you have?
A: In the Sinuiju SAR, all matters except military or foreign affairs are to be handled by the Special Administrative Region itself. For instance, it has the power of final adjudication.
Q: I’m from ‘Yomiuri Shimbun’. Would you expect assistance from China, Liaoning and Dandong?
A: North Korea appointed me the SAR Chief Executive, one reason being that I am a Dutch-Chinese. The relations between China and North Korea are those of ‘flesh and blood’. The opening up of Sinuiju will bring great benefits to Liaoning and Dandong. The spokesman for China’s Ministry of Foreign Affairs has also indicated that China welcomes and supports the establishment of the Sinuiju SAR.
Q: I am Yu Ning, a finance reporter. You have many enterprises under the Euro-Asia Group in Shenyang. How are you going to handle them? There are reports of problems related to real estate in Holland Village, and the Ministry of Land and Resources has dispatched investigators. What is the outlook, if I may ask?
A: I will commission the management of my companies, but I will not personally participate. I can hire a CEO to do so. I am now an official of the Sinuiju SAR and can no longer participate in any commercial activities. There is no problem with my real estate in Holland Village. That’s over and done with. Some journalists have been talking about this for eight months now. I suggest you go to the Liaoning Bureau of Land and Resources and check this information on your own.
Q: I’m a South Korean reporter. How did you come to know Marshal Kim Jong II?
A: Marshal Kim believes in me, mainly because I have a good understanding of North Korean people. I was educated about the Chinese People’s Voluntary Army when I was young, as well in patriotism and internationalism. I grew up on the banks of the Yangtse River, and since I was a child I have known that North Korea lies on the opposite side of the Yalu River.
I have a deep understanding of their difficulties, the people and what makes them unique. Currently there are difficulties, mainly caused by the economic sanctions implemented by the Americans. Marshal Kim has entrusted me to develop an area of 132 square kilometers. My responsibilities are very heavy.
Q: I am Xu Xun from ‘Hong Kong Commercial Daily’. I’d like to ask why Kim Jong II understands you and believes in you. Could you explain in detail?
A: Three reasons: Firstly, trust. Over the past year, I have brought my sincere affection to North Korea. When I saw hundreds of thousands of martyrs of the Chinese People’s Voluntary Army who devoted their lives to another country and were buried there fifty years ago, I thought about why they sacrificed themselves. They were there to protect their country, and to protect the North Korean people. Even now, family members still cannot go there freely to look after graves of their heroic relatives; only when North Korea opens its doors can Chinese easily enter the country.
Secondly, during my visits I found that North Korean people are very kind, austere and hardworking, but the agriculture there is very primitive. So I provided advice and guidance to them about agriculture. That was helpful to the agricultural development of North Korea, and as a result, we have established true friendship.
Thirdly, North Korea tried to establish a free trade zone in Rajin-Sonbong, but it failed. Now North Korea plans to open itself up to the outside world, and has appointed a foreigner to establish a special administrative region. They have chosen me, an ethnic Chinese with Dutch citizenship, to do so in this special historical period.
Q: What are the development plan and the outlook for cross-border trade in this 132-square-kilometer area?
A: The Sinuiju SAR includes Sinuiju City and the coastal areas of Daji Island where deep-water berths will be built. The SAR will open up to the outside world at all levels. Our objective is to establish a highly developed economic center in Northeast Asia, making it into an internationalized region with high technology, financial services, factory-based processing and tourism as the core industries. The SAR will implement many preferential policies. For example, in the financial sector it will learn from Switzerland and allow for the free flow of money. There will be a stock exchange here to help finance small and mid-size Chinese firms. And we will encourage ‘concept stocks’, that is, if young students from Peking University or Tsinghua University come up with good projects and want to treat their know-how as equity, they can apply to go public in Sinuiju.
Q: I’m a South Korean reporter. Can people travel freely in and out of the Sinuiju SAR from September 30 onwards?
A: Yes, after September 30, you can enter and exit freely via Dandong. Holder of a valid passport issued by any country can enter Sinuiju without a visa. (1)

This statement immediately elicited gasps and caused a minor sensation among the journalists, especially those from South Korea and Japan.
With this assurance of visa-free entry and exit for all foreign nationals, Yang Bin had unwittingly committed a serious faux pas. The news spread quickly worldwide, but come September 30, not all foreigners could enter Sinuiju without a visa—and certainly not South Korean journalists. This subsequently earned him heated criticism from foreign media, and damaged his image among the public.
In fact, an official in the North Korean Delegation had made such a promise, but the Ministry of Foreign Affairs was opposed. (2) Yang Bin’s efforts to imitate the way China treated the Taiwanese were immediately rebuffed.
Foreign reporters, especially those from Japan and South Korea who had longed to set foot on North Korean soil, ended up criticizing him for this claim so relentlessly that Yang Bin eventually had to make a heart-felt apology.

First session of the SAR Preparatory Committee
Yang Bin’s team members arrived in Holland Village during September 27 and 28. I didn’t have to travel as I had already been living there for some time.
At 9 a.m. on September 29, all of us came to the Dutch Queen’s Palace—headquarters of the Euro-Asia Group. The hall on the second floor and two conference rooms were overflowing with Chinese and foreign journalists. As we walked through the crowd, several overseas reporters came over for a bit of news, but I could only politely refuse comment. We passed through Yang Bin’s office on the third floor and then rested in the fourth floor conference room while awaiting the rest of the team.
Yang Bin chaired the meeting. In front of him was a two-page outline drafted by Weng Yong-Xi. At Yang Bin’s right sat Ma Ning, Weng Yong-Xi and Li Su. At his left were Tong Lian-Fa, the author, Wang Nuo and Li Ying-Zhou. Zhou Fang-Sheng sat opposite Yang.
Qiao Sheng-Li was unable to join us since his wife was hospitalized for surgery. Also absent for unknown reasons was Professor Luo Wei-Jian from Macau University Law School, who had participated in our negotiations with North Korea.
Before the meeting Yang Bin asked Li Ying-Zhou, the Hong Kong lawyer, whether he could buy back all the shares of Euro-Asia Agricultural Holding. Li’s answered in the affirmative.
Why did Yang ask this question? We all knew that Yang Bin would have incoming funds of one billion yuan by mid- or late October. This money could be used to buy back shares, pay Holland Village debts and restart construction work. A small portion of it would be used to cover SAR government expenditures at the preparatory stage.

“Today is the first session of the SAR Preparatory Committee,” began Yang Bin. “I am the captain, the only one on board, and I have been chosen by Marshal Kim. Our meeting today is primarily to consider the framework of our organization. Let’s brainstorm and complete the discussion within today.
“I don’t have any experience in politics, so I hope that all of you can help me. Let’s talk first about our principles. Firstly, we must love North Korea; without North Korea, there would be no Sinuiju SAR. We should treat Chinese and North Koreans equally. Secondly, we must love Marshal Kim. North Korea has been closed from the outside world for dozens of years. It has not been easy for him to prevail over dissenting views and achieve what we have today. Thirdly, we must establish a highly efficient, clean government.
“Great opportunities come our way only once or twice in a lifetime. The future belongs to all of us, not just me. North Korea is a very poor country, but the people are hardworking and thrifty. I hope that we can set aside our own petty interests to achieve something greater for mankind.
“For the sake of the Sinuiju SAR, I will not worry about my personal losses at Euro-Asia Agricultural Holding, and I can also arrange for others to manage Holland Village. If my wife is opposed, I can divorce her. (Words that came back to haunt Yang Bin soon thereafter, as his wife requested divorce when he was jailed. Now divorced, she resides in Holland.) These are ‘petty interests’ which can be done without. In April, a 600 million yuan loan originally promised to me by Shenyang was not only cancelled, but they even demanded repayment of previous loans. Yang Bin didn’t get where he is today easily, but he’s hanging in there!
“The duties of each official must coincide with the interests of the Sinuiju SAR.
“In the future, we must keep minutes of our meetings. Then we can check our progress against targets documented in those minutes.
“Many politicians worldwide are studying the Sinuiju SAR. This may signify an end to the cold war.
“The future world economy will be regionally based. Northeast Asia may well be the region that attracts the most attention and develops the fastest.
“We have to establish a highly efficient government for the Sinuiju SAR. Do not appoint someone for public service because of personal connections. None of my relatives will be considered for service in the government, now or in the future. As for friends, the most important to consider is their trustworthiness, and then their abilities.”
“Thirdly, honesty.
“Corruption is totally unacceptable. We must stick to the principle of no corruption right from the beginning, and from the very top of our organization. We will not permit anyone to commit corruption by misuse of his privileged position. If any of you here today happen to violate some law in the future, I may try to help you, or even grant an amnesty to you with my authority as the Chief Executive. But if any of you are guilty of corruption, then I, Yang Bin, will not lift a finger on your behalf. Before 1997, Hong Kong implemented corruption-free governance, and its Independent Commission against Corruption is very strict. A government that accommodates corruption is a government doomed to fail.
“Fourth, we must look after the interests of China and the Chinese people. China is like the family that raised me, and North Korea is like the family into which I have married. Even when I have a good life in the future, I will not forget about my Motherland. We can never do anything to hurt China. As I have said, even when a mother misunderstands and strikes her child, she is still motivated by concern for her child. The child will not hold such punishments against her mother. Whenever we deal with issues involving China, we must resolve them well. No one shall be allowed to violate this principle. It will be included in our guidelines for civil servants.
“As for rules, the SAR Government must have its own ‘game rules’:
“Rules of Procedure: Important policies must be discussed in a meeting held by the Chief Executive, and then signed and approved by him. Key personnel changes must be approved at a meeting held by the Chief Executive.
“Rules of Authorization: Bureau Directors will be responsible to the Chief Executive and have full authority over their staff. We need to select excellent young people to serve as civil servants who will ensure a good image for the SAR. Authorizations will be communicated in a Letter of Authorization issued by the Office of the Chief Executive. We need to establish a strict filing system, and all measures should be founded upon the law.
“Fifth, the establishment of institutions:
“’Small government, big society’. The SAR will be a completely free capitalist system. Our government will act as a service center to serve the common people. We will be a government at the service of the people, and the people may enter government offices as necessary. Local government offices will not make decisions. Their mission is to provide service. These offices do not need to research, they simply need to execute their functions as ordered.
“We need to learn from advanced countries across the world, and we must certainly introduce successful approaches from the West to this region. Don’t worry about this. Marshal Kim himself instructed: ‘Everything will be decided by Yang Bin. No one can change those decisions.’
“I want to create the finest society here, and introduce the best laws, best system and best human resources from the outside world. Ten years from now, when the Special Administrative Region is fully established, we will see those brightly lit skyscrapers and know they are the result of our sweat and tears!
“Though I am the Chief Executive, I will obey the collective intelligence of our team. I can accommodate, develop and give full play to everyone’s intelligence. I have many faults, but one of my strengths is the ability to listen to the opinions of others. The worst sort of person is not just born stupid, but is also so stubborn that he refuses to listen to other’s advice, and cannot learn from the wisdom of others.
“Our government will implement democracy. In the Sinuiju SAR, everyone will have equal human rights, whether he is the Chief Executive or a washroom attendant.
“The Sinuiju SAR will implement a market-driven economy. All of us here come from a planned economy. Everyone knows that the less government intervention, the faster an economy grows. We are the decision makers. Let’s not interfere with our subordinates too much. We shouldn’t behave like certain leaders who personally supervise enterprises. Don’t kill the goose that lays the golden eggs!
“Government Departments will be arranged as follows:
“General Administration Center: This is the leading body directly under the Chief Executive. Under it will be the Secretariat, Personnel Office, Government Information Office, Foreign Affairs Office, Files Office, Administration Office, Franchise Operations Offices, and so forth.
“The Finance Bureau will handle fiscal affairs, banking, monetary policy, the stock exchange and so forth.
“The Bureau of Taxation will be very important to our future development. The SAR Government will rely on this revenue for its own budget, and we will also need to have tax police.
“The Bureau of Economic Affairs will handle investment promotion, economic affairs, corporate registration, incorporation and management, and so forth.
“The Bureau of Special Industry Management will handle firms in sectors such as electricity generation, telecoms, the gaming industry, and so forth.
“The Bureau of Land Planning will handle land management, urban planning and land auctions.
“The Utilities Bureau will be in charge of providing water, electricity, gas, heating, and other public utilities necessary to people’s livelihood.
“The Bureau of Public Health will be in charge of medicine, hospitals, vaccination services and so forth.
“The Education Bureau;
“The Bureau of Transportation will administer land, air and sea transport.
“The Immigration Bureau will handle immigration and emigration controls.
“The Customs Bureau;
“The Police Bureau;
“The Procuratorate;
“The SAR Development Bureau;
“The Bureau of Environmental Protection.
“That’s it for now. Altogether, 15 Bureaus plus the General Administration Center. If we need anything more in the future, we can set it up accordingly.
“Tong Lian-Fa will serve as Chairman of the Legislative Council. The candidate for this position will have to be formally elected, but the North Koreans have already given their consent.
“I recommend Weng Yong-Xi for the position of Assistant to the Chief Executive.
“Ma Ning will be General Manager of the General Construction Company of the SAR, in charge of investment promotion, land auction and other issues. For Ma Ning’s assistant, I am appointing a newcomer to our team, Zhou Jian-Ping, former General Manager of a publicly listed firm. The General Construction Company’s future revenues will ensure there is food on our table.
“After this meeting, I need to confer with Zhou Fang-Sheng, Li Su and Wang Hui-Dong.
“The lawyer Li Ying-Zhou will need to resign from his job in Hong Kong and come to work in the SAR. He will be in charge of paperwork for firms that want to go public on the Sinuiju Stock Market.
“Our schedule for the near future:
“The Chief Executive will take office on October 25. Sinuiju’s Yalu Hotel will temporarily serve as the government seat, and the cabinet will convene there.
“Investment promotions: There will be no actual construction in October, but we should make full use of the wintertime to promote investment. We will set up investment information centers in Dandong, Shenyang, Dalian, Xi’an, Chongqing, Guangzhou and Shanghai, and we can also designate agents to seek investment on our behalf. Investment information centers should also be set up in Tokyo, Seoul, the United States and other countries, and we can designate agents there as well. Such centers and agents need to be in place by October in Tokyo, Seoul, Hong Kong, Taiwan, Southeast Asia and the eastern and western coasts of the United States. Ma Ning will be in charge.
“We will go to Sinuiju on October 2 to raise awareness of the call for investment. North Korea will support us. It has mobilized people in Sinuiju to hold a large-scale reception and celebration.
“On October 7, Weng and Ma will go to South Korea with me. I assume President Kim Dae-Jung will meet us. I also want our team to visit Japan via South Korea.
“From October 11 to 13, we will hold another activity to raise awareness of the call for investment.
“Wang Nuo has to speed up the project planning and design, and set up a planning workgroup soonest. Without a detailed project plan, how can anyone make profits from investing in property? How can we auction land? Once we have sold some land, things will get moving.
“But first I’ll get some cash together to pay all of you, my brothers. I know that you have all worked very hard for the SAR for months now without earning a cent. I promise that I will remunerate you this month for your services over the past few months.
“Weng, please research an appropdriate compensation system for us. At the beginning, let’s not pay high salaries. Salaries will increase gradually over time. And Weng, you also need to get travel documents for these people as soon as possible. The design and printing must be professional to deter counterfeiting. Moreover, issues such as how we will liaise with the international community, plans for setting up the stock exchange quickly, and even the uniform design for police and border guards, all need to be discussed by you.
“I have to go downstairs to meet with the overseas journalists soon. They are pressing me for an explanation of why I promised visa-free access beginning September 30, only to find that North Korea didn’t agree. I have to deal with this now. Weng will chair this meeting starting now.” (3)
Yang Bin left the conference room in a hurry, proceeding straight to the second floor to face those persistent journalists. Later, I heard that Yang Bin apologized repeatedly, promising them he would definitely allow all reporters to visit the Sinuiju SAR freely after he had officially taken office.
Weng Yong-Xi chaired the meeting as instructed. “First of all, I want to clarify that President Yang has appointed me as Assistant to the Chief Executive. My role in this position is simply to facilitate communication between the senior and junior staff. I am just here to serve all of you. Ma Ning is a Dutch citizen and a classmate of President Yang. He took part in the SAR negotiations of the Sinuiju SAR right from the beginning. Yang Bin says he is ‘captain’ of the Sinuiju SAR, and Ma is his ‘chief mate’. We will be working under their leadership.
“I will primarily consider two things. One is money, and the other is people. All of you have been working for more than half a year, and now we have to pay for everyone’s work. Without money, the SAR Preparatory Committee cannot continue to operate. Yang Bin must pay salaries by mid-October. As for people, we need to employ a group of young staff that understands Korean. We can recruit them from Jilin and Liaoning.”
“We should focus more on quality than quantity,” cautioned Wang Hui-Dong.
“This time Dean Tong is going to become a real dean, ‘Dean’ of the Legislative Council of the Sinuiju SAR,” mused Zhou Fang-Sheng.
“The Chairman of the Legislative Council will be able to sit at the same table—on an equal footing—with the SAR Chief Executive,” quipped Li Su.
“It’s just like Yang said—the Chairman must be elected by members of the Legislative Council. My post isn’t official yet,” retorted Tong Lian-Fa.
“Let’s listen to what the Assistant to the Chief Executive has to say about personnel arrangement in the Sinuiju SAR,” said Li Su.
Weng Yong-Xi: “As Assistant to the Chief Executive, I am just someone who facilitates communication between staff of various levels. According to Yang’s instructions, Tong will be Chairman of the future Legislative Council; Zhou Fang-Sheng will be Director-general of the Finance Bureau or Bureau of Taxation; Wang Hui-Dong will be in charge of foreign affairs and government information under the General Administration Center; and Wang Nuo will be in charge of either the Port Bureau or the Land Planning Bureau, depending on what you decide.”
“Hui-Dong, you'd better take charge of the General Administration Center,” said Zhou Fang-Sheng.
“Right,” agreed Li Su.
“Let's break for 10 minutes,” said Weng Yong-Xi.
Some of us left the meeting room, some made for the rest room and others gathered in a corner, speaking quietly.
Seeing Wang Nuo sitting by himself, Tong Lian-Fa joined him. “Wang, why didn’t you speak up for the Planning Bureau position just now?”
“Guan,” he asked me, “in your opinion, which job is better for me?”
“The Land Planning Bureau, of course! Yang Bin has brought this up many times in front of you and me.”
Wang Nuo smiled, embarrassed. “I'd like to hear more opinions and consider it a bit longer. After all, it’s Yang who will decide who does what!”
Everyone trickled back into the meeting room and discussion continued.
“Let's continue our discussion and see if there are outstanding issues. As for money,” Weng Yong-Xi said, “I will ask Yang to honor his promise as soon as possible.”
“Qiao didn’t come. What’s the arrangement for him?” asked Tong Lian-Fa.
“Qiao Sheng-Li may be in charge of the development work there. Yang didn’t clarify this yet.”
“So, who are the official members of the SAR Preparatory Committee?” queried Tong Lian-Fa.
Weng Yong-Xi: “Yang, Ma Ning, Tong, me, Zhou Fang-Sheng, Wang Nuo, Wang Hui-Dong, and maybe Qiao Sheng-Li. Eight members in all.”
“What about Guan?” asked Wang Nuo.
“I've never heard Yang speak about a position for him.”
Done with the journalists, Yang Bin came in and sat down. “Have we finished with our initial arrangement of personnel?”
“Zhou Fang-Sheng will be in charge of Finance Bureau,” answered Weng Yong-Xi.
“Great! I’ll feel at ease if Zhou handles finance in the SAR.”
Weng Yong-Xi: “Wang Hui-Dong will be the Spokesman for the Government Information Office and the Foreign Affairs Office,” continued the Assistant to the Chief Executive.
“Oh? In charge of foreign affairs too?” Yang Bin said nothing more, but his surprise was evident. In fact, this designation was Ma Ning’s idea. Wang had studied in the United States, which would be helpful in dealing with foreign journalists.
But I don’t think Yang Bin would ever agree with Wang Hui-Dong running the General Administration Center of the SAR—as proposed by Zhou Fang-Sheng and Li Su. I mentioned this matter to Weng Yong-Xi one day while playing chess, and he wasn’t keen on Wang Hui-Dong in that role either. In fact, Yang Bin had probably long ago decided on Weng Yong-Xi for the post.
When Weng Yong-Xi mentioned to Yang Bin that Wang Nuo still had not told the group whether he would take responsibility for the port or the Land Planning Bureau, Yang Bin immediately stated his viewpoint: “Wang had better take charge of the Land Planning Bureau!”
“I’ll do as Yang says!” acquiesced Wang Nuo.
Yang Bin turned to Li Su: “Li Su, in my opinion, you’d best not hold a post in the SAR Government. It would be better to establish a business there. Is that alright with you?”
“Fine. I’ll start up a company.”
“Let’s dine together in my place. We can continue discussions over lunch.”
That ended the first session of the SAR Preparatory Committee. (4)
When we went downstairs and walked out of the Queen’s Palace, Yang Bin was swamped by a throng of journalists posing questions and snapping photos. As we took our seats in the cars awaiting us, Yang Bin grabbed Yuan Fang, a reporter from Nan Feng Chuang, a Guangzhou-based magazine, and pulled him into his Mercedes-Benz. He revealed that the first session of the SAR Preparatory Committee had just been held, but released no meaningful details to Yuan.
In the evening, the owner of a well-known North Korean restaurant in Shenyang invited Yang Bin and his consultants for dinner. We all attended. During the dinner, the owner, his Korean waiters and the guests all performed traditional Chinese and Korean songs and dances. It was a festive atmosphere.
“President Yang plans to go to South Korea on the seventh, and Japan on the ninth with Ma Ning, Zhou Xiang and me,” confided Weng Yong-Xi during a visit to the rest room. “I recommended you come too, and Yang agreed. So you’d better give your passport to Zhou Xiang to start the paperwork.”
I nodded.
The next day Zhou Xiang came for my passport. Later I heard that a Japanese businessman, Yoshiharu Akahoshi, had personally contacted Japan’s Ministry of Foreign Affairs to smooth the way for us. What a pity it is that, in the end, we never went on that trip.

Yoshiharu Akahoshi appointed Chief Representative to Japan
At 10 a.m. on September 30, Yang Bin, now officially SAR Chief Executive, received a visit from his good Japanese friend, Yoshiharu Akahoshi. Their acquaintance came about through a casual mention by a third party.
In late December of 2001 Akahoshi was visiting the Mayor of Guangzhou to discuss an investment project. During a break in the meeting, a friend from Hong Kong mentioned a certain Yang Bin, the second wealthiest man in China and a promising young entrepreneur. Keen to meet him, Akahoshi arranged to do so back in Tokyo the day after Christmas.
“I was very interested in meeting this young businessman,” recalls Akahoshi. “I’m in venture capital, and we are the only Japanese firm that invests in private firms in China. He flew over in a private plane. My meeting with Yang Bin was that simple.”

Why did Yang Bin go to Japan to meet him? “In order to sell the flowers and vegetables produced by his agricultural company to Japan,” said Akahoshi, “Yang came here for a preliminary market survey. He brought his family too, accommodating them in the presidential suite of a top-notch hotel. Yang, a Hong Kong friend of mine and I went to Atami City to enjoy the hot springs there. He seemed an honest and easy-going person with the temperament of a country dweller. He showed great interest in what I was saying. In a word, he left a deep and unique impression on me.”
Yang Bin stayed in Tokyo briefly, but the two became good friends. “He loves hot springs. On the morning of the second day when we were soaking in the spring waters, he asked me how much it would cost to buy this hotel, the Hyakumangoku, the largest in Atami. Perhaps he liked hot springs and wanted to use it as a guesthouse in Japan. Anyway, I told him it would be best to wait and buy it two or three years hence. Even though we spent only one evening together, we became good friends who could trust each other. Afterwards he invited me several times to go to Shenyang. Then he left on his private plane.”
Three months later, on March 8, 2002, Akahoshi flew to Shenyang. Zhou Xiang, Reception Office Director, met him at the airport. To show respect and extend a warm welcome to the guest, Yang dispatched the latest white extended Mercedes-Benz and a Rolls Royce to pick him up. The Japanese guest was shocked at the grand scale of Holland Village when he arrived.
Yang Bin awaited his guest at the head office of Euro-Asia Group, the Dutch Queen’s Palace.
“President Yang greeted us there, smiling. A top executive of a large Japanese firm dealing in vegetables was with me. Since he wanted to get into the flower business, I introduced him to President Yang. When our long talk was over, Zhou Xiang showed us around Holland Village where we could see signs of the classic Dutch agriculture that Yang had mastered, and was applying to modernize China’s agriculture. But the scale of the undertaking was really huge.
“In the evening, we were treated to a show of great hospitality in a glass-enclosed garden in Holland Village. President Yang took the microphone and invited me to sing with him. For a Japanese like me, this was an overwhelming honor. His sincerity certainly brought him the great success he has achieved now. There were birds chirping, flowers scenting the air, and fish swimming playfully. You couldn’t help but want to sit there and fish.
“When the banquet was at its noisiest, President Yang took out a hand-made map and told us he had something important to tell us, but first, we had to promise to keep it confidential. He said that North Korea would establish a special administrative region or an economic zone in Sinuiju, and he would be the Chief Executive there. To be frank, I was shocked by this news. But I was bowled over by the significance of this: Across from Dandong on the other side of the Yalu River—that’s the sovereign territory of North Korea. An SAR? My first thought was Hong Kong. An SEZ? My first thought was Shenzhen. Either way, this was stunning. Had North Korea come so far in its thinking?
“President Yang also told me that Kim Jong II had granted him the fishing rights within North Korean territorial waters,” said Akahoshi. “It would be permitted to sell the catch to Japan, seafood like crabs, flatfish and globefish. He asked me to introduce some large Japanese companies with which he could cooperate. I agreed right on the spot, since there were almost no fish left in ocean waters off Japan.”
Those are Akahoshi’s memories of his first visit to Holland Village.
He paid his second visit on May 14 when I was residing there. It was the first time that I had seen Akahoshi. He was not tall but was quite robust with a big stomach, just like Yang Bin. The two looked like brothers, except that Akahoshi sported heavy eyebrows that sloped markedly inward toward his nose.
This time business owners of the Fukuoka fish market in northwestern Japan joined Akahoshi. He introduced them to Yang Bin to discuss the possibility of selling fish imported from Sinuiju. And two days later, Akahoshi introduced Maruha, the largest fishery products firm in Japan.
Yang Bin and his Japanese guests discussed various details including fish types, clearance permits, packaging, transport and refrigeration.
Coastal fishing had been too aggressive in Japan and the quantity of available fish had dropped significantly. The quantity and species of fish in Tokyo’s famous Tsukiji fish market, where choice catches are auctioned before the sun rises, have been decreasing yearly. So Yang Bin’s Japanese guests had great expectations for Sinuiju’s supply capacity.
On June 27, 2002, Akahoshi went to Dandong to visit seafood-processing plants and conduct further negotiations about seafood refrigeration and processing. He promenaded along the Yalu accompanied by Euro-Asia staff. As he looked across the river at houses, trees and people in Sinuiju, he felt very curious. He was intrigued to find that there was no sign of tension on either side of the iron bridge spanning the Yalu. Everything was peaceful.
In the evening, Yang Bin held a banquet in the glass-enclosed garden for Akahoshi and guests from a South Korean fishery products firm. Zhou Xiang and I were chatting with Akahoshi when Yang Bin came over.
“So, Big Brother, how was today’s trip to Dandong?”
“Dandong is a beautiful city. Is that Sinuiju on the other side of the river?” asked Akahoshi.
“Yes, your little brother will go there to be the Chief Executive of the Special Administrative Region in the future. I’d like to know your views on the Sinuiju SAR.”
“The sooner the news about the Sinuiju SAR is released to the public, the better,” replied Akahoshi frankly. “There are four benefits: The American people will greatly change their impressions of North Korea; North Korea will be more reliant on China; you may win the Nobel Peace Prize for your contribution to peace in Northeast Asia; and it will demonstrate Kim Jong Il’s flexibility to the world, and help resolve all the problems smoothly.”
Yang Bin listened to him intently.
On August 20, 2002, Akahoshi came to Shenyang again. In Hong Kong and Macau just then, Yang Bin flew back immediately on a chartered plane when he learned of Akahoshi’s arrival. Touched by this, Akahoshi went to the airport to greet Yang Bin.
“Yang deplaned, smiling his customary smile. ‘Big Brother!’ he called out, as always. When you look at our photos, we do really look alike. Japanese often said we looked like brothers.”
This time Akahoshi was visiting Shenyang at Yang Bin’s express invitation. Yang showed him the commercial property that lined the main boulevard of Holland Village. He intended to use these properties to house world-famous restaurants and exclusive outlets for posh brands. He wanted to hear Akahoshi’s opinion on this, and hoped he would recommend Japanese players in the industry who would participate in this project. Akahoshi knew the general managers of some of the most famous restaurants in Japan, so he accepted Yang’s request with little hesitation.
“I proposed a clubhouse, a driving range and an 18-hole golf course at the center of Holland Village. President Yang was very interested in my idea and we immediately went out to take a look at the land. It was a large piece of land, where they originally planned to build a heated swimming pool that could accommodate 30,000 vacationers. They were also very interested in building a golf club there, and he wanted to sign the contract as soon as possible. He urged me to visit again soon.”
On September 12, Akahoshi came to Shenyang along with his friend Iida Yasutaro, a golf expert. He also brought a draft design for a driving range and an 18-hole golf club.
“But President Yang was summoned to North Korea by Kim Jong Il. I could sense that the news about the Sinuiju SAR would be released soon.” In fact, that was the very day when the Sinuiju Basic Law was passed.
It was on the morning of September 28 that Akahoshi learned from a Japanese newspaper that Yang Bin had returned to Shenyang. “The day had finally come. I couldn’t control the great joy in my heart, and contacted Yang immediately. He replied that I should come at once. So I rushed off to Shenyang.”
Akahoshi flew from Tokyo to Shenyang via Dalian, and arrived in Holland Village late at night. The next day Yang Bin held the first meeting of the SAR Preparatory Committee and was extremely busy all day long. But finally, he met with his Japanese “brother.”
“I was the very last guest Yang met that day. When we met, he hugged me and our big bellies touched briefly. That was a special sign of our camaraderie. He was dead tired and asked if I minded if he took a massage while we chatted. I felt that was better for him, so I was happy. We spoke for more than an hour about issues like infrastructure and fund-raising for Sinuiju, but in the end he was just exhausted. So we set a rendezvous for the next morning.”
On the morning of the 30th they discussed fund raising in Japan. As Chairman of China Venture Investment, Akahoshi maintained good relations with many investors. And he promised to make Yang Bin a large no-interest loan to support his brother’s work in the Sinuiju SAR.
Yang Bin proposed to appoint Akahoshi as Sinuiju’s Chief Representative to Japan. Akahoshi was very pleased, of course, and they took a souvenir photo showing them with the Letter of Appointment in their hands.
Yang Bin mentioned that he planned to visit South Korea on October 7 and Japan on October 9. He asked Akahoshi whether he could arrange for meetings with Japanese entrepreneurs and investors.
“Since he had such plans, I had to agree,” recounted Akahoshi.
“I wanted him to meet our Prime Minister Koizumi,” Akahoshi told me later. “This was no easy task, but I resolved to do my best. To arrange such a meeting, I contacted a senior civil servant in the Ministry of Foreign Affairs who had a contact in the Prime Minister’s office.”
Yang Bin also confided to Akahoshi that “I took the job of the SAR Chief Executive in the interests of peace in Northeast Asia, but none of the media accurately reported my motives. That’s truly a pity!”
Akahoshi suggested that Yang Bin do a TV interview for broadcast in Japan before his arrival. That way he could accurately convey his intentions in a timely fashion. Yang Bin happily accepted his advice, and Akahoshi managed to schedule an exclusive Japanese TV interview with Yang Bin in Holland Village for October 5.
Since he needed to make all sorts of arrangements on the ground, Akahoshi rushed back to Japan on October 1. The same day, South Korean TV broadcast the news that Yang Bin had appointed Kim Han Kyun as Sinuiju’s Chief Representative to South Korea.
“My flight to Narita Airport was delayed for two hours. As soon as I got off the plane, I drove to see my contact in the Ministry of Foreign Affairs, and requested his help in arranging for Yang Bin’s visit to Japan. I told him that I had been appointed as Sinuiju’s Chief Representative to Japan. He congratulated me on the good news, and we celebrated with a beer.
“Around 8 p.m. that evening, I called Zhou Xiang. But he told me in a weak voice that President Yang’s trip to Japan was cancelled. I felt a bit worried. I had worked like a dog to get the Shenyang Consulate to issue Yang Bin a visa, which they did reluctantly. Now what had happened?”
Asahi Shimbun reported that Yang Bin’s planned trip to Sinuiju on the 4th might be cancelled. “Yang Bin Postpones Overseas Visits” ran the headline in the Hong Kong Commercial Daily. The article reported that a trip to South Korea on October 7 and a further trip to Japan on the 9th, at the invitation of Yoshiharu Akahoshi, General Manager of China Venture Investment Co. Ltd, had been postponed and no new dates scheduled. Yang Bin was cited as stating that for the moment his focus was on the walls surrounding the Sinuiju SAR, so his trips to South Korea and Japan were of secondary concern.
Yoshiharu Akahoshi was in Japan. Of course, he didn’t know why Yang Bin was not going to South Korea and Japan. Moreover, very few people knew the true reasons behind this change of heart.
On October 4, Yoshiharu Akahoshi, Sinuiju’s Chief Representative to Japan, learned from the Japanese media that Yang Bin had been “summoned” by the Shenyang Police on the morning of that day.
In the letter he mailed to me, Akahoshi wrote sadly: “Chief Executive Yang has been taken away by the police. My brain has gone blank. Pitiful Yang Bin! What on earth has happened?” (5)

Interviewed by New York Times and The Economist
On September 30, we heard rumors that Dandong Border Defense had been alerted…
On October 1, China’s National Day, Wang Nuo, Yang Da-Yong and I took a short ride to Hague Hotel for breakfast. We were stopped by the police near the hotel for “inspection”. We were all shocked. We didn’t have to get out, but they looked inside the car and asked the driver to open the trunk. Then they let us go.
Qiao Sheng-Li, Ma Ning and Wang Hui-Dong arrived in the compartment where we were to dine. Everyone was talking about the “inspection,” but none of us had been frisked. They didn’t even ask us to get out of the car. They just took a look in the trunk. Why?
On October 2, more police cars arrived in Holland Village and now every vehicle exiting Holland Village was being inspected.
I had a sense of foreboding.
On October 3, the number of police cars suddenly increased and virtually surrounded Yang Bin’s villa. Yang Bin’s interpretation was, “As I am the the SAR Chief Executive, equivalent to the level of a Deputy Premier in North Korea, police need to take protective measures for me…”
When asked by reporters, that is how Yang Bin replied. But he felt very anxious, I could tell. He asked Ma Ning, Weng Yong-Xi and Wang Hui-Dong about the police cars.
“No problem!” they assured him. “You’re the SAR Chief Executive now!” But Ma, Weng and Wang didn’t know anything about Yang Bin’s role in Holland Village or Euro-Asia Agricultural Holding.
At this time, Hwang Myong Chol, a North Korean official, was staying with Yang Bin in his villa and liaising occasionally with the North Korea Consul General in Shenyang and with Pyongyang. But he didn’t participate in any of Yang’s meetings with entrepreneurs, friends or journalists.
Having announced on September 27 that foreign reporters could visit the Sinuiju SAR without visas beginning September 30, Yang Bin felt constrained to give interviews to the international media when his promise proved unfounded. With journalists flocking to Holland Village, he devoted most of October 3 to interviews with reporters from the United States, the United Kingdom, Japan, South Korea and Hong Kong.

Perhaps most noteworthy were the interviews conducted by James Miles of The Economist and by Zeng Zimo of Phoenix TV. Miles was a frequent visitor to North Korea, and his magazine is considered authoritative and influential in economic and business circles. His questions also tended to be astute and to the point.
Here is a transcript of the conversation between Yang Bin and James Miles of The Economist:

Q: When I visited North Korea in July, they were experimenting with reforms in the pricing and wage system. Food prices had been adjusted first, and controls on other goods lifted too. Then wages and currency exchange rates were also adjusted. Does this mean that North Korea has already begun carrying out a policy of reform and opening up?
A: Farmers in North Korea rely mainly on grain harvests. Each unit, which consists of three or four households, is assigned a production quota. For several decades, the government would buy up the harvest and distribute it according to the National Plan. As such, the country met the people’s food needs.
Originally, farmers were paid 0.60 to 0.80 won per kilo, but now the price paid by the government has jumped to 3 won per kilo. As of this July when controls were lifted, grain was retailing for 30 to 40 won per kilo, and farmers are much keener to grow grain as a result. As grain prices rose, so did prices for other goods, and wages were adjusted too. It’s fair to say that North Korea has taken its first step in economic reform. In August, construction of the South-North railway and highway began, and certain lengths of them have gone into operation. This, plus the establishment of the Sinuiju SAR, all demonstrate the opening up of North Korea.
Q: What does the Sinuiju SAR plan to do on the economic front?
A: Rajin-Sonbong failed due to its location, its limited modality as a free trade zone, and other factors. Marshal Kim learned from this experience, so he has taken a bold move in establishing a Special Administrative Region in Sinuiju, and implementing a policy of openness in which foreign entrepreneurs take responsibility for development, land can be leased for a long period, and foreign capital and products can move freely.
Q: A lot of capital will be necessary to attract investment and build infrastructure such as a port and power supply. How much capital in total will be required?
A: According to international practice, development cost per square kilometer is 500 million yuan. The Sinuiju SAR will hire world-class planning experts from the United Kingdom. Currently, the development cost in China is 200 million yuan per square kilometer. At least US$10 billion will be necessary for Sinuiju’s 132 square kilometers. Highways, bridges, water supply facilities, the sewage system and gas pipeline will all be funded by the SAR Government. In other words, these assets will be state-owned. But private firms will run the telecommunication facilities and power plants. We aim to complete infrastructure construction by the end of our first Five-Year Plan.
Q: Is it possible to achieve your goals without the support of international capital?
A: As a businessman, I know the importance of financing. Building a fine, modern city costs money. But I am capable of meeting this challenge. Marshal Kim granted me power and 132 square kilometers of land. Land leasing, bonds, and 20-30 year infrastructure loans from the United Nations will be used to support our projects. I have established good relations in business circles. I believe that we will obtain financial support.
Q: “What if the United States government won’t grant loans to North Korea?
A: If I am not mistaken, [Assistant Secretary of State] James Kelly of the United States arrives in Pyongyang today.
Q: Have you contacted the relevant departments of the U.S. government?
A: No.
Q: Whose idea was it to establish this special administrative region?
A: Marshal Kim’s idea. He told me about it this January. Such an important decision couldn’t be made by anybody except Marshal Kim, and this is not a decision that could be taken by a run-of-the-mill leader. The Sinuiju SAR will be opened up to the outside world, just like when China opened up, Shekou was the starting point. This is a process.
Q: Have you forewarned the Chinese government? What was their opinion when they were informed?
A: My companies were based in Liaoning, so I only notified the provincial government. Liaoning is a local government, but foreign affairs are the business of the country. If 1 trillion yuan is invested in Sinuiju, 600 to 700 billion of that will flow to China, and first to Liaoning. The local economy will benefit.
Q: There were so many policemen outside today, and they are very sensitive to the media. They were also checking foreign reporters. Aren’t you concerned about this?
A: No, I’m not. The establishment of a Special Administrative Region in Sinuiju conforms to the policy of peaceful development advocated by Chairman Jiang Zemin. I have not accepted the position of SAR Chief Executive for money’s sake.
Once you have money, you don’t want to wage war; you want to pursue peace and sustainable development. The prerequisite for peace in Northeast Asia is that all countries in Northeast Asia become wealthy. If South Korea and North Korea reunite, they will become wealthy. In a wealthy Korean Peninsula, no one will opt for war, and North Korea will integrate itself into international community.
A socialist country that has been closed for 50 years wants to cast away outdated concepts and, in the spirit of a new era, carry out reform, open up and embrace the world. This also reflects the wishes of Marshal Kim.
I am a Dutch citizen. Europe and North Korea have good diplomatic relations, and the friendship between China and North Korea has been forged through blood and fire. For an SAR whose mission is to implement capitalism—and which is located in between two socialist countries—if China doesn’t support it, it cannot develop successfully. But I firmly believe that China will support it. The bonds between China and North Korea that were established in Mao Zedong’s time, the policy of reform and opening up during Deng Xiaoping’s time, and peaceful development advocated by Chairman Jiang Zemin, all these will positively influence and support the development of the Sinuiju SAR. China may have some different views on the SAR, but these disparities will be resolved.
Q: What sort of ‘views’ would they be?
A: I am a child. Even if my mother has some misunderstanding about her child, she is still my mother and I am her child. I also hope to go to Beijing and pay an official visit to the leaders of the state, and explain my ideas. One article in the Sinuiju Basic Law states that the SAR does not allow residents to engage in politics, and political activities against the interests of North Korea or China are prohibited. I have done everything I could regarding this.
Q: How many original residents of Sinuiju will be relocated? Where will the money come from?
A: There are 500,000 residents of whom 200,000 will remain. Their relocation is the business of the North Korea government, and should take two years.
Q: China established the Shenzhen Special Economic Zone, and the Chinese government supported it. Hong Kong capital poured into the SEZ, and played an important role in the development of Shenzhen. Sinuiju is to be established as an SAR, but without financial support from North Korea or the World Bank, there will be huge pressure for capital unless China, Japan, or South Korea provides preferential loans.
A: Shenzhen is an SEZ. Sinuiju is a totally liberalized SAR. If we create advantageous conditions and low tax rates, global capital will come here. We will also keep in close contact with Japan and South Korea. Since the Chinese Government has not yet declared its position, we are waiting for the moment when it does.
Q: Will tax revenues be submitted to the central government of North Korea? What benefits are there for the central government?
A: What comes from the people will be used for the people. Marshal Kim established the SAR not for the sake of economic benefits, but out of political considerations. Dramatic changes in the international environment, the tightening of the U.S. blockade and sanctions, and several years of natural disasters have created difficult challenges for North Korea. Marshal Kim demands that government cadres abandon their outdated concepts and move toward ‘reforms’ and ‘innovations’ that are compatible with new domestic and international trends. This means that they hope for peace and integration with the world. Marshal Kim is an open-minded leader. The Sinuiju SAR won’t bring great benefits to North Korea in a short period time. But many young North Koreans will be trained in the Sinuiju SAR, and in their own way they will expand the SAR and pass on their experiences to others…
Q: I understand. If mainstream society continues in the socialist mode, with only a small special zone doing things differently, the impact won’t be significant.
A: For mine workers who have stayed underground for half a year, if they come to the surface suddenly they can’t immediately adapt. North Korea has been closed for 50 years. It’s impossible for all North Koreans to adapt to opening up at once. This will be an ongoing process.
Q: Recent reports say that you owed taxes or something, and the tax bureau is investigating this matter. What is the situation?
A: A plaque carrying the citation, ‘A Model Tax-paying Enterprise” hangs on the wall near the entrance of the Euro-Asia Group office. I have an agreement with Shenyang Tax Bureau that we pay tax on a designated date every year. It’s October 12 this year. I have never owed any back taxes.
Q: I have been to Pyongyang five times between 1992 and 2002. I can feel that great changes have occurred in North Korea. People’s thinking has changed as well.
A: Since my first visit to North Korea last year, I’ve been there so frequently I’ve lost count. I’ve been to many different places too. I can sense the changes are bigger and bigger, and the pace has picked up too.
Q: It seems that on the Internet there are reports from the Netherlands that you obtained permanent residence by applying for political asylum.
A: Applying for permanent residence was on the mind of virtually every Chinese studying in Holland at that time. I think people can understand that.
Finally, what I want to say is that the establishment of the Sinuiju SAR symbolizes an end to the cold war in Northeast Asia, and North Korea’s first step toward integrating itself in the international community. This is the big trend toward peaceful development. I personally want to be an envoy of peace.

Yang Bin held interviews with reporters from domestic and foreign media at his villa in the company of Wang Hui-Dong, the Spokesperson of the SAR Preparatory Committee, and me. As his biographer, I was invited by Yang and I took down these conversations in detail.
After the interview with James Miles of The Economist, Yang Bin also was interviewed by the New York Times and South Korea’s Yonhap News Agency. The questions raised by the South Korean journalist focused largely on issues such as whether entrepreneurs from South Korea could invest in the Sinuiju SAR, investment opportunities in infrastructure projects, preferential policies and entry/exit visas.
Comparatively speaking, the conversation between Yang Bin and the Director of the Shanghai Office of the New York Times was somewhat more original, like the Chinese name—Kong Zhou—he had chosen for himself. Here are excepts of the interview:

Q: How did you come into contact with North Korea?
A: As a child I knew about North Korea from our textbooks. But I paid my first visit there only last year. I found Pyongyang was very nice, clean and beautiful. No European city can compare with it. North Korean officials are open-minded. They have a good understanding of the outside world and want to be a part of it. I realized then that what foreign newspapers said about North Korea was different from my personal experience.
I’m in the agriculture business. Every month I would go once or twice to study the agricultural industry, and I introduced Chinese greenhouses into North Korea so that the people there could enjoy fresh vegetables in the winter. If there were no good types of fruit trees or flowers available, I introduced better quality varieties from overseas to help them. There are many hills but few plains in North Korea. I helped them develop modern agriculture so that their products could be sold to Japan and South Korea, big future markets.
I am helping North Korea, but the people in my company and even my own family don’t understand my motivation. It was Deng Xiaoping’s policy of opening that allowed me to go to study in Netherlands, and return and become an entrepreneur. I’ve made my fortune, and now I hope for peace on the Korean Peninsula. Chairman Jiang Zemin advocates peaceful development. There are three unstable regions in the world, and in Asia, that means the Korean Peninsula. Peace and economic development are needed, and I am willing to make my own small contribution. I just want to help North Korea understand examples of advanced agriculture. I am simply doing my best—it never occurred to me that one day I could become the SAR Chief Executive.
Marshal Kim gave me the opportunity to lead Sinuiju. The North Korean people chose me. I am willing to devote the latter half of my life to helping North Korea open up to the outside world.
Q: Entrepreneurs from South Korea and Japan also wanted to invest in major projects in North Korea, but North Korea didn’t give them that chance. Why have they given it to you?
A: I understand the people of North Korea. Since the first day I visited North Korea, I have offered them my sincere support. Over the last two years, I donated grain, canned food and other foodstuffs. I donated truckloads and even shiploads of milk powder, hamburgers and chocolates to the children there. I’ve helped them establish agricultural facilities so that they could enjoy fresh vegetables in the winter, and hopefully this practice can be popularized all over the country in the future. I built strong emotional ties with the people of North Korea, Marshal Kim saw this, and so he gave me the task of running the SAR. For a variety of historical and practical reasons, he chose me.
Q: When did Marshal Kim meet you for the first time?

A: That’s confidential. Some people say that ‘two mysterious people created a mysterious special administrative region’.
Q: Will you move to the Sinuiju SAR?
A: Since the day I took the oath of office, I have devoted the second half of my life to the Sinuiju SAR. The Sinuiju SAR will be involved in the interests of many neighboring countries. But I will be fair, just, highly efficient, and work with integrity.
I would like to say a few words in the name of the Chief Executive of the SAR.
The North Korean people love peace and long for peace. North Korea suffered too much and too long from a history of aggression against it. From 1905 to 1945, Japanese invaders occupied Korean Peninsula. How many people did Japanese bayonets and whips kill? Millions of people also died during the war between the South and the North. I wish the world could give a bit of warmth to the North Koreans; they would gladly accept it. They have suffered from natural disasters for years, and are still not able to completely feed and clothe themselves. They need an additional two million tons of grain. I am willing to make every effort to promote relations between North Korea and other countries, including the United States
Q: What comment would you make about Bush’s policies?
A: In my opinion, the information Bush has received about North Korea is not correct. Today, U.S. Assistant Secretary of State James A. Kelly arrived in Pyongyang. I hope that relations between North Korea and the United States will improve. My driver in Pyongyang is a North Korean who once chauffeured Madeleine Albright, a person who wished to improve relations between North Korea and the United States. I believe that Marshal Kim sincerely wishes to improve relations between North Korea and the United States. This conforms to the interests of the North Korean people. The interests of the masses above all else!
Q: You plan to visit South Korea and Japan in the near future. Do you have plans to visit the United States?
A: Yes. I will go to Sinuiju tomorrow. You can go to Dandong, where more than two million people are looking forward to the day when Sinuiju opens up. The first to benefit from the establishment of the SAR are China, Liaoning Province and Dandong.
Q: What position do you hold in the Sinuiju SAR?
A: Chief Executive of the Special Administrative Region. I can issue visas.
Q: Can foreign companies start to invest there?
A: Yes, by the end of October. Investors from South Korea, Japan, Taiwan, Hong Kong, and the United States are all welcome here. They can also invest in the gambling business. We welcome U.S. military veterans to visit Sinuiju, take a look and invest.
Q: Is the Siniuju Basic Law the same as Hong Kong’s?
A: The Basic Law was drafted based on law in Europe and Asia, and of course, it borrowed some features of Hong Kong’s Basic Law. Other laws will be enacted soon. Under Sinuiju’s Basic Law, the Chief Executive’s power exceeds that of his counterpart in the Hong Kong SAR. Within the legal limits, we stress fairness and equality. And we have also drawn on U.S. law.
The Sinuiju SAR is like a blank piece of paper on which the most beautiful and finest pictures will be drawn. The tax rate is the lowest in the world. Our human resources policy will attract top-quality talent from the world over. Sinuiju will be a mini version of the United Nations.
Q: I’ve heard that you have strong opinions about the media of several countries.
A: Many foreign reporters are biased against North Korea. The Sinuiju SAR has learned the lesson of the failure of Rajin-Sonbong. Marshal Kim has ceded power via the Basic Law, and none of the central government ministries or local authorities will interfere with the operation of the Sinuiju SAR.
During a meal on September 25, I talked with Yang Hyong-sop, Deputy Chairman of the Supreme People’s Assembly and the fourth most senior leader in North Korea. I invited him to visit the SAR often, observe it and offer guidance. He answered, ‘But if you don’t issue me a visa, I can’t go. That power is granted to you under the Basic Law, and we must respect it.’ I was very touched by his words. I must be responsible for North Koreans and for the investors in the Sinuiju SAR. Except for military and foreign affairs, I am fully empowered.
Q: Will troops be garrisoned there?
A: In order to ensure the economic development of the Sinuiju SAR, troops will be stationed on the island.
Q: You are a Dutch citizen. Now you have also obtained North Korean citizenship. Are you paying attention to Beijing’s views?
A: I am highly attentive to those views, and I firmly believe Beijing will support us. Zhang Qi-Yue of the Ministry of Foreign Affairs has expressed China’s welcome and support. China is my mother. If her child is naughty and disobedient, she may give him a smack or two. But the child will always understand his mother.
Q: Will Euro-Asia Agricultural Holding and tax issues have any impact on this SAR?
A: Euro-Asia Agricultural Holding is a publicly listed firm. As for the tax issue, we have reached an agreement with the Shenyang authorities to make our tax payments by October 12. As a foreign-invested firm, we used to be exempt from taxes, but that is no longer the case.
Regarding our listed firm, Chen Jun resigned suddenly and Li Gang has been appointed General Manager.
When a person wants to do something big, there will always be some people who don’t understand him. For the benefit of North Korea, a country that has been sealed tight for 50 years, if I can open the door leading to the outside world, then I will have no regrets in this life.
When I’ve chosen a date to officially set up office in the Sinuiju SAR, I welcome you to visit!

Zeng Zimo’s last interview with Yang Bin
When Yang Bin finished the New York Times interview, we came out to find “the Beijing Girl” sitting on the sofa in the main lounge, chatting happily.
Yang Bin saw Kong Zhou and Fan Wenxin off, and turned around to greet Zeng Zimo. “When did you arrive here?” he asked in a warm voice.
“President Yang, I just arrived,” she answered, getting to her feet. This was the way she always greeted him, with no reference to his new position in the SAR.
Yang Bin came over, sat down on the biggest of the three sofas, and patted the pillow beside him in a gesture of invitation to Zeng Zimo. She seated herself next to him with no hesitation. I remained seated on a smaller sofa to the side, as always when he had guests.
When Zeng Zimo saw me, she stood up politely and shook hands. “One Beijinger greets another,” I said, and she smiled.
A female reporter from Phoenix TV took a seat on the other small sofa, and Zeng introduced her colleague to Yang Bin. The cameraman adjusted the video camera to film Yang Bin from the right angle, and then he put the lights in place.
The three of them comprised Phoenix TV’s interview team. They had arrived in Holland Village after interviews throughout North Korea, including Sinuiju. They were the only foreign TV crew that had recently been allowed to travel widely and conduct interviews in North Korea, access given to them thanks to Yang Bin.
“I’ve heard that you had some dangerous experiences while interviewing in North Korea. Is that so?”
“You mean us getting across the river,” said Zeng Zimo. “Heavy rain caused a flood that damaged the bridge, so we were stuck. But our North Korean driver managed to find another road and we did finally cross the river.”
I learned about this from Phoenix TV and their magazine. A collapsed bridge blocked Zeng Zimo and her team. Luckily they were not in real danger.
Knowing from personal experience how bad the roads can be, I once asked a North Korean official why they were in a state of such poor repair. In Chinese, we have a popular saying: “If you want to get rich, first get your roads in order.”
He told me that after several consecutive years of natural disasters, the country had to focus on basics like food and clothing. “We will definitely build roads in the future,” he said, patting me on the shoulder. “We will build highways too.”
At 6:30 p.m., Zeng Zimo formally began the interview and most of the guests left the room. But I remained on the small sofa, jotting down their words.
It never occurred to me that this was the last interview I would sit in on. I was still planning to visit Sinuiju on October 4 along with Yang Bin, and then proceed to South Korea with Ma Ning and Weng Yong-Xi too, where it was said President Kim Dae-jung might receive us. And there would be a visit to Japan on October 9, arranged by Yoshiharu Akahoshi and the Asahi News Agency.
But this was all just an illusion. In an instant, what was a possible reality was to become a myth destroyed. Or rather, it was all a myth, which, like bubbles flying in all directions, inevitably dissolved in the face of a cruel reality.
The big living room was ablaze with light from Phoenix TV’s equipment, and the interview began:

Q: What actions have you taken since your return from Pyongyang?
A: Investors from Japan, Taiwan and the United States have shown strong interest in the establishment of the Sinuiju SAR, while China has responded relatively quietly. But I believe the logic behind the establishment of the Sinuiju SAR conforms to the ideology of leaders of three generations of the Communist Party of China. The concepts of reform and opening up advanced by Deng Xiaoping allowed China to advance from poverty toward prosperity. Now China has joined the WTO, integrating itself fully with the international community. North Korea also hopes to open up and become part of the international community, so it has established the Sinuiju SAR. It’s a good idea! It also conforms to the theme of ‘peaceful development’ highlighted by Chairman Jiang Zemin at last year’s APEC meeting. The opening of the Sinuiju SAR will also bring employment opportunities to 500,000 people in China.

Q: Why has China remained so quiet? The Ministry of Foreign Affairs spokesperson did touch on the topic of the Sinuiju SAR, but hasn’t mentioned the appointment of its Chief Executive yet.
A: My enterprise is the largest foreign-owned company in Liaoning. Last year I was cited as the second wealthiest man in China by Forbes magazine, and many people criticized me as a result. China always has sympathy for the poor, not for the rich. The scale of development at Holland Village is so big, and they are the beneficiaries of this project, not me. I can’t just walk off with it.
I have become the SAR Chief Executive at 39, and being so young I will definitely be criticized by people. When a child is criticized by his mother, he doesn’t hate his mother. When addressing the concerns of the high-ranking leaders of North Korea, I told them that I must be loyal to the 23 million North Korean citizens since I am “married” to North Korea. But I am also a Chinese. I have an unshirkable responsibility to maintain the sovereignty and security of China.
Q: What criticisms are being made?
A: Political leaders in Shenyang don’t dare answer my calls. I don’t know why. Maybe there are some misunderstandings.
Q: Will this impact negatively on you?
A: No. Economists and other scholars don’t think so.
Q: How do you deal with certain types of friction that occur between China and North Korea?
A: Relation betweens China and North Korea will not be affected. I am like a ‘daughter-in-law’ managing relations with my ‘mother-in-law’. Relations between China and North Korea, hundreds of thousands of Volunteer Army soldiers who were martyred, these are hugely important.
Q: Many people are interested in your background and say you represent a surprising ‘combination’.
A: I have replied to this question from you before. I myself am an ordinary Chinese.
Q: ‘Special protection’ has been arranged at the entry point and along the roads of Holland Village. What do you think about this?
A: It’s very normal. The Chinese government is adopting protective measures.
Q: Why have they dispatched so many policemen and police vans?
A: I don’t know.
Q: What is it that most concerns and interests South Korea?
A: North Korea does not recognize passports issued by South Korea. I will copy the way China treats Taiwanese visitors. All citizens of the Sinuiju SAR have equal rights.
Q: Will there be South Koreans appointed to government positions in the Sinuiju SAR?
A: Yes.
Q: Are there investors for the Sinuiju SAR at this point?
A: Several hundreds.
Q: The Sinuiju SAR plans to attract so much capital within 10 years. Is this a credible goal?
A: There is a lot of capital worldwide looking for opportunities. The Sinuiju SAR will be an investor’s paradise. The SAR Government will be composed of talented people from different countries worldwide. With its low tax rates, it will attract many businessmen to invest.
Q: What’s the attitude of the United States?
A: They welcome us.
Q: From which channel did you learn this?
A: After the Sinuiju SAR was announced, the United States declared that they would remove North Korea from the list of countries in the ‘Axis of Evil’. Then James A. Kelly visited Pyongyang. The world doesn’t have a good understanding of North Korea, and I hope everyone can go there and look around. On September 24, Kim Yongnam, President of the Supreme People’s Assembly of North Korea, presented me the Letter of Appointment as the Chief Executive of the Special Administrative Region. Later on that day during dinner, Yang Hyong-sop, the Deputy Chairman, told me that even he could not enter the Sinuiju SAR without a visa issued by me. I was very touched by his words.
Q: I get the feeling that the Sinuiju SAR will create a new image for North Korea. But Euro-Asia Agriculture’s stock has recorded fluctuations in Hong Kong. If you go to the Sinuiju SAR to work as CEO, won’t there be even greater fluctuations?
A: The fluctuations you mention are not normal ‘fluctuations’. They were due to a lack of confidence among certain funds plus manipulation of the media, especially irresponsible reporting by International Finance News in Shanghai. Their reporter just asked a security guard here a question and wrote some nonsense.
Q: Is it worthwhile for you to lose so much just to be the SAR Chief Executive?
A: If I can do my bit for the peace and development of Northeast Asia, it’s even worth my life. My father died at age of 33. I long for peace very much, and I’m willing to do everything I can.
Q: It seems some media say a Taiwanese publication reported you have some kind of kinship relationship with Kim Jong II.
A: Not so.
Q: You originally declared that from September 30 onwards we could enter Sinuiju without a visa. Why isn’t this the case now?
A: Based on my power under the Basic Law, I am authorized to implement this. But I also made a mistake here, since the border walls had not yet been built, and it will take two months even for temporary ones to be installed. As a democratic-style leader, I have to admit my error.
Q: Will we have to wait for the wall to be erected?
A: This is what I hope to discuss during my upcoming trip to Sinuiju. I hope to resolve this issue soon.
Q: A big bridge will be built between Dandong and Sinuiju. China and North Korea are discussing the details, so when will construction begin?
A: Perhaps next year. The Liaoning Government will handle the construction work.
Q: There are reports from South Korea that they will invest in the cross-border highway from Seoul to Sinuiju. Isn’t North Korea worried about such a key artery being in South Korean hands?
A: North Korea will solve this problem.
Q: I went to Sinuiju several days ago. The residents there had no idea about the future of the SAR.
A: There are 500,000 residents in Sinuiju right now. 200,000 of them will remain there. The rest will be relocated to southern Sinuiju.
Q: When will people there know the details?
A: Tomorrow [October 4] I will go to Sinuiju to check out the environment there. I plan to take office on October 25, which happens to be the fiftieth anniversary of the day when the Chinese People’s Voluntary Army crossed the Yalu River. That is also the day for us to cross the Yalu River again to develop Sinuiju. The purpose of my trip tomorrow is to share views and negotiate certain details.
Q: Before October 25, aren’t you going to announce the plan to establish the SAR to the local residents?
A: This trip is mainly to check on the planning for the SAR.
Q: When will you announce the Legislative Council election and the list of government officials?
A: After I take office, we will announce the list of members of the SAR Preparatory Committee.
Q: Who will be on the list?
A: At the moment, this information is still confidential.
Q: What welfare benefits will be available to future SAR residents?
A: All residents will have health insurance. Education will be a combination of free and paid types. When I was young, I needed to get a certificate from the District Residential Committee in Nanjing to prove that I was an orphan, so that I could be exempted from certain tuition and miscellaneous expenses. In the SAR, North Korean residents will enjoy free education.
Q: When I went to Sinuiju, the people there had no idea whatsoever about the SAR. But they said that they would follow instructions from Marshal Kim.
A: Any instruction from Marshal Kim will be followed and supported by all people in the country.
Q: Chief Executive, we heard from some sources that there will be a change in the relations between South and North Korea. Kim Dae-jung has indicated willingness to help North Korea in economic reconstruction. What’s your view on this?
A: The government of South Korea welcomed the establishment of the Sinuiju SAR, and the people overwhelmingly indicated their interest in coming.
Q: Do you plan to visit South Korea to solicit support from the government and people of South Korea?
A: Yes. South Korea is one part of our plan. But it’s not the determining factor for success. Many business leaders from Japan, Taiwan and Hong Kong also plan to invest in the Sinuiju SAR. We are promoting investment from China right now.
Q: Does the U.S. decision to remove North Korea from its ‘Axis of Evil’ list have anything to do with the establishment of the Sinuiju SAR?
A: Yes. The United States has taken note of Marshal Kim’s determination.
Q: Will World Bank offer some support?
A: I think so. The Sinuiju SAR will join some international economic organizations, just as Hong Kong and Macau did, because we are doing something good here.
Q: Will the United States support the Sinuiju SAR before it normalizes relations with North Korea?
A: I believe that they will support us.
Q: Some Hong Kong media report that Euro-Asia Agricultural Holding’s taxes are in arrears.
A: These are taxes that the local authority had earlier confirmed could be paid at a later date. Several days ago when I came back from Pyongyang, I received the notice to pay the tax. I told them that I would pay the tax in full by October 12.
Q: Is this targeting you specifically, or businessmen in Liaoning in general?
A: It targets me only.
Q: Euro-Asia Agriculture stock has seen major ups and downs. If you go to Sinuiju, how are you going to deal with issues related to Euro-Asia Agriculture and Holland Village in Shenyang?
A: A third party has been commissioned to handle issues related to Holland Village real estate. Euro-Asia Agricultural Holding has appointed a new CEO. I will make good arrangements for these entities, because they represent my sweat and tears over many years.
Zeng Zimo’s interview with Yang Bin was now over, and the lights began to dim. She was Sinuiju-bound the next day as she followed the story of SAR Chief Executive Yang Bin.
Yang Bin rose to his feet. “Now I really regret having been ranked among ‘Forbes China Richest 100’…”
Zeng threw a surprised look at Yang, but said nothing. The cameraman asked to shoot some background materials relating to the Chief Executive and Sinuiju. Yang Bin had staff bring a map of the Sinuiju SAR and his Letter of Appointment as Chief Executive.
Then he altered his earlier low-spirited tone of voice. “Zeng, let’s just have dinner here tonight,” he said cheerfully. “I’ll cook some of my classic dishes for everyone!” And with that, off he went to the kitchen.

I discovered that Yang Bin had answered Zeng Zimo’s interview questions a bit curtly this evening, and the ambience was a bit depressed; it wasn’t like the usual Yang Bin.
Was it because people kept reminding him that more police and police vans were gathering outside? Or was it because Li Gang, Euro-Asia Group Vice-president had told him frankly that they might not get across the Yalu tomorrow? Zhou Xiang had also confided “maybe that’s the case.”
Yang Bin could sense the seriousness of the situation. Moreover, everybody in Yang Bin’s big living room, including relatives, friends, classmates and guests, all had a premonition that something bad was going to happen.
Even Zeng Zimo wondered out loud: “Why on earth are there so many police vans and policemen?”
Seeing Zeng Zimo was sitting on the big sofa, I chatted with her, the girl from my hometown Beijing. I told her that these days a lot of TV hosts were writing books, including Yang Lan, and they were selling well.
“You could repackage your Phoenix TV interview transcripts and publish a book,” I suggested.
“I don’t have that much material yet. Maybe in another one or two years,” she smiled.
“You can write down your experiences in North Korea and publish it in China. But let me help you design and publish it, if I may?
She kept smiling.
My advice was sincere. I heard that she was a talented girl, so she should be a good writer. It was a pity that I had never read any of her articles. (Author’s note: Zeng’s words quoted in this book came from my later reading.) She had hosted finance and economics TV programs in Hong Kong, and had interviewed many key persons in those circles. This time she had visited North Korea. She should have a host of wonderful experiences that many readers in China would love to learn about.
Zeng’s phone rang. It was Phoenix TV Hong Kong calling. Since it was noisy and crowded in both the lounge and the smaller living room, she took the call in the washroom. Later that evening, Phoenix TV broadcast a conversation between Zeng Zimo and another Phoenix TV host, revealing that Yang Bin would set off with his team from Shenyang at 6:30 a.m. on October 4, cross the Yalu and arrive at Sinuiju around 9:00 a.m..

Yang Bin “summoned for questioning” by police
Yang Bin donned his apron and cooked for us in the kitchen. The red-hot flames, the sizzling oil, the metallic clang of spatula meeting wok, and Yang Bin’s culinary technique attracted many people. Phoenix TV and I took many shots of the chef in action; after all, in his early days in Holland Yang Bin had worked in Chinese restaurants and mastered cooking.
When his best dishes arrived at the table, everyone was impressed by their color, aroma and taste. Praised by us and watching us compete more helpings, at last a smile showed on his face. He repeatedly encouraged Zeng Zimo to try this or that dish. But the Beijing Girl dined elegantly and courteously, in contrast to we frequent guests who were more casual.
The guests at this “last dinner” were Zeng Zimo, two other Phoenix TV journalists, Wang Nuo, Wang Hui-Dong and I.
After dinner, Zeng Zimo and her team left.
We came back to the big living room, now full of guests: Chen Hong, Yang Bin’s classmate from the military academy, Li Gang (husband of Yang’s primary school teacher), Lu Ban (Yang Bin’s steward), Xu Ning (Yang Bin’s guard), Zhou Xiang, Hwang Myong Chol, an official from North Korea, Liu Dian-Hui (Yang’s secretary), two port experts brought by Wang Nuo, and Yang Bin’s aunt, Yang Feng-Lin.
At 10:40 p.m., I asked Yang Da-Yong to leave with me and go back to our villa for a rest. On the way back, we saw a van and a sedan parked near Yang’s villa. They were both from the Shenyang Police, and two anti-riot vans were parked around the corner with police inside. They didn’t stop us. As we approached the tennis club, we could see more anti-riot vans with their headlights on. It seemed these vans were besieging Yang Bin’s A9 villa.
“Guan Shan, why are all these police vans surrounding Yang’s place?” asked Yang Da-Yong.
“I don’t know either.”
Not long after falling asleep, I got a call from Yang Bin’s villa. It was a friend on his mobile.
“Yang’s villa has been surrounded by the police. They’re at the door, by the windows and all over the neighborhood. No one can enter or leave. At this historic moment, you'd better come over and see this first-hand.”
I glanced at my bedside clock. It was 1:30 a.m.
“Okay, I’ll come right away.”
I dressed and ran to Yang Da-Yong’s room next door. “Wake up! The police have surrounded Yang’s villa. Nobody can go in or out now… ”
The young lawyer was shocked. “What’s going on?”
I told him about my friend’s phone call.
He got dressed at once and we left the villa. The freezing wind quickly blew away any hint of drowsiness. We quickened our pace as we walked along the small artificial river. As we neared the tennis clubhouse, we saw two police vans with their piercing headlights, and vans at the entry to the main boulevard. But when we detoured behind the clubhouse, we found A9 hemmed in on all sides, headlights beaming, police everywhere.
“Let’s go back!” I told Yang Da-Yong.
“Why?”
“We’ll never get through.”
Yang Da-Yong could see those vans too. The whole neighborhood was illuminated, and police all about.
“Let’s go back!" I tugged at Yang Da-Yong.
“Something bad is going to happen!” said Yang Da-Yong as we returned to our place.
I didn’t answer him. I couldn’t answer him.
“You go to bed now. I’ll wake you up if anything happens.” I lit up a cigarette, sat down on the sofa and turned on the TV.
At 3 a.m., I went out by myself. I followed the same route, and found the police and their vans in the same positions, only it seemed the lights were even more piercing.
There was nothing to do but return to my villa, go upstairs and sleep.
I don’t know how long I had been sleeping when I got another call. It was Yang Bin’s military academy classmate. “Is this Guan Shan?”
“Yes.”
“This is Wang Jia-Tang. Yang was taken away by the Shenyang Police at 5:10 a.m.”
My watch showed 6:10, October 4.
“Was anyone else taken away?”
“Just Yang.”
“Are the police still there?”
“All the police and vans are gone,” said Wang Jia-Tang.
“Who’s at Yang’s villa now?”
“Li Gang, Chen Hong, Yang’s aunt and me. Li Gang asked me to call you. Come quickly and take a look!”
“Okay, I’ll be there right away.” I hung up, thought for a moment, and then called Ma Ning and Qiao Sheng-Li to inform them.
I woke up Yang Da-Yong and told him Yang Bin had been taken away.
“Was anyone else taken away?” he asked, surprised.
“No. Just him!”
We walked out of our villa. The sky was bright with daylight already. White and black swans were playing and calling out to one another in the canal near our villa. Everything was so peaceful. It seemed nothing had happened to Holland Village.
When we arrived at Yang Bin’s villa, it was 6:30 a.m. The two guards were no longer at their posts, nor were the two guard dogs. The front of the villa was deserted.
There were only Li Gang, Wang Jia-Tang, Chen Hong and Yang Feng-Lin in the big living room. They were all from Nanjing. Chen Hong, who had witnessed everything at Yang Bin’s villa last night, told me what happened.
“Around 11 p.m. last night, Li Zhonghui, Vice-president of Worri Bank, the second largest bank in South Korea, together with Associate Vice-president Huang Guisheng and Section Chief Zheng Junwen, came to Yang Bin’s villa in two extended Mercedes-Benz limos. There were eight of them, six South Koreans, one fat Chinese and one slim Chinese. They were here to discuss investing in Sinuiju with Yang.”
Who were those two Chinese? Later on I learned that the thinner of the two was Sun Feng-Xiang, Chairman of the Shenyang Fengxiang Group. The other was Xu Wei. I knew Sun Feng-Xiang because I had visited his firm. He was a famous private entrepreneur in Shenyang, mainly in real estate. He had cooperated with entrepreneurs in South Korea and had many friends there. Sun planned to introduce South Korean bankers to Yang Bin, hence this meeting.

“Yang Bin received his South Korean guests in the big living room,” continued Chen Hong. “Around 11:30, Li Gang and I wanted turn in for the night. But police blocked our way and wouldn’t allow us to leave. We didn’t want to disturb Yang’s conversations with his guests, so we broke the news to Yang Feng-Lin and Wang Hui-Dong quietly.
“Wang Hui-Dong took Yang Bin aside and told him that armed police were not permitting anyone to enter or exit. He asked Yang whether they should advise the guests to leave first, but Yang Bin said that they should wait and see. So he returned to the big living room and continued chatting with his guests.
“By then it was 12:30 in the night and everyone was very anxious. When Xu Wei, the fat Chinese who had accompanied the South Koreans here, learned about the situation, he tried to leave and contact his friend the Director-general of the Police Bureau. But the police also pushed him back as soon as he opened the door. Then he scribbled a short note and passed it to the police outside, but they just threw the note back.
“We decided to inform the South Korean bankers of the situation. No one could enter or exit. One of the bankers made a call to the South Korean Consulate, and at 1:30 a.m., someone knocked at the door. A senior police officer entered with officials from Shenyang’s Foreign Affairs Bureau. ‘Who are the guests from South Korea?’ They and the two Chinese who brought them, eight in all, were allowed to leave.”
Sun Feng-Xiang later recounted the details of what happened that night, from the point of view of the South Korean bankers.
“I have cooperated with the SR Development Group of South Korea on many projects in Shenyang, and we have been good friends for quite some time. Woori Bank is the second largest bank in South Korea. After Yang Bin became the SAR Chief Executive, many entrepreneurs from South Korea were looking to find a way to invest in Sinuiju. They all turned to Worri Bank for assistance, and Worri Bank turned to me through the SR Group.
“These Korean bankers arrived in Beijing on October 3,” continued Sun Feng-Xiang. “They transited to Shenyang, drove direct to Holland Village and arrived at Yang Bin’s villa around 11:00 p.m. Actually, I had heard that Holland Village was already being monitored by the police, but since the meeting had already been set, it would have been awkward to postpone it.
“Inside Holland Village, we passed three sentries. But when we arrived at Yang Bin’s villa, dozens of policeman ran over to our car. I was afraid that Li Zhonghui, Woori Bank Vice-president, would misunderstand, so I explained to him that these were guards assigned by the Chinese Government to protect Yang Bin, the Sinuiju SAR Chief Executive.
“Yang Bin stood at the door of his villa and invited his South Korean guests inside. When I turned around, I noticed that the police had surrounded the villa.
“I introduced the guests from the SR Group and Worri Bank: Li Zhonghui, Vice-president of Worri Bank, Associate Vice-president Huang Guisheng, Section Chief Zheng Junwen, Xu Wei and interpreter An Kyungho. We started the conversation as soon as we took our seats.
“Since North Korea won’t allow South Koreans to invest directly in Sinuiju, over one hundred firms requested that Worri Bank negotiate with Yang Bin on their behalf. Yang Bin showed a map of Sinuiju, an urban layout plan and related materials to all the guests. He pointed out the future locations of the port, the airport and petrochemical plants.
“South Korean entrepreneurs and Woori Bank initially agreed to invest 10 billion yuan for the first stage of development in the Sinuiju SAR, of which two billion yuan would be earmarked for the final stage of projects in Holland Village. The rest of the funds would be invested in the construction of the airport, the port, and the petrochemical plant in Sinuiju. Worri Bank would establish a joint venture with our Fengxiang Group on behalf of these 100-plus firms, and we would cooperate with Yang Bin via this joint venture. This would channel 10 billion yuan into the Sinuiju SAR.
“It was past midnight already, and we stood up to leave. But when the door was opened, the police said that their orders were to prevent anyone from entering or leaving the villa. There was little I could do but advise the Woori Bank VP that this inconvenience might be related to problems with land use in Holland Village. The police were only performing their duty, so could he please take a seat and wait. We sat down again, took tea and chatted, but there was nothing Yang Bin could do.
“He ended up taking leave and going upstairs to the second floor to go to bed. It was around 2:00 a.m. and I thought to myself that we couldn’t just keep on waiting. I called some officials in the city government, and at around 3:00 staff from the Foreign Affairs Bureau arrived and permitted the South Koreans and their Chinese hosts to leave. We left Holland Village and took the South Koreans to the Marriott. By then it was already 4:00 a.m.”
Li Gang interrupted. “After the South Koreans left, I took a rough count. There were still 17 people in Yang Bin’s villa.”
Chen Hong stepped in to continue the saga. “They asked again: ‘Who is the Foreign Affairs Officer from North Korea?’
‘I am,’ answered Hwang Myong Chol.
The police said to him: ‘You are free to go.’
‘No, I will stay,’ he replied.
“So the police officers and directors from foreign affairs bureau left. It was 2:00 a.m. and everyone was hungry. Yang Bin asked the young guard to cook up fried rice with eggs and some other dishes. Everyone ate a bit and then took a rest. Staff from the Euro-Asia Group stayed on the first floor, Yang Bin, his driver and the young guard on the second, and Wang Nuo and the other guests on the third.
“At 4:00 a.m., the Director of the Liaoning Foreign Affairs Bureau entered and asked Secretary Liu out for a talk. At 4:30 am, they asked Shen Liang, Yang Bin’s chauffeur out for a chat. At 4:55 am, the villa door was opened. More than thirty policemen came in and stood in three rows, followed by Directors from various provincial and municipal bureaus, and armed police officers.
“Then someone, perhaps a senior police officer from the provincial bureau, read out the ‘Summons for Questioning.’
“Afterwards, they instructed that all of us on the first floor—including Zhou Xiang, Yang Feng-Lin, Wang Hui-Dong and Li Gang—to remain in Secretary Liu’s office, right next to the big living room.
“The police proceeded to the second floor, and I followed close behind. They went to Yang Bin’s bedroom, woke him up, told him to get dressed, and read out the Summons to him. When they realized I wasn’t a policeman, they told me to go back downstairs.

When Chen Hong described this part of the story, he chuckled. Perhaps he thought that he had been very bold in pretending to be one of the police officers. Chen Hong and Yang Bin were classmates in the military academy, and he later served as an instructor in the army. Maybe that’s where he got his nerve.
Yang Feng-Lin, Yang Bin’s aunt, described how Yang Bin left the villa.
“I saw Yang Bin being taken away by the police, and I rushed to the window immediately. As soon as he walked out he was surrounded by dozens of armed police. He looked back briefly and then got into a police car. He wasn’t handcuffed.”
“Several minutes after Yang Bin was taken away, some city government staff asked Hwang Myong Chol to go out and speak with them,” added Li Gang. “Perhaps they were explaining the situation to him. The rest of the people also left the villa. Then we realized that all the police and their vans had left. The officials continued speaking with Hwang Myong Chol, but they didn’t stop us from leaving.”
I remembered that Wang Nuo and two harbor experts had been reporting on their work to Yang last night, and hadn’t left. “Where’s Wang Nuo?”
“He stayed on the third floor last night,” replied Li Gang.
I rushed upstairs and knocked on each door until I found him. Since he had bedded up for the night at 3:00 a.m., he was ignorant of the events that had since transpired. I told him that Yang Bin had been formally summoned. Knowing he had only slept three or four hours, I suggested he return to his villa and take a rest.
Meanwhile, Wang Hui-Dong had come back in a rush, because a group of journalists was scheduled to leave for Sinuiju between 6:30 and 7:00 a.m. As media spokesperson, he was in charge of receiving them. Fan Wen-Xin, the New York Times reporter, had heard that Yang Bin had been taken away. Over and over, Wang Hui-Dong had to explain to him and the other journalists what had happened.
Just then I saw Lu Ban, Yang Bin’s steward, and Xu Ning, his bodyguard, leaving hastily and in silence.
And here came Zeng Zimo. She stopped by the river, her eyes fixed on Yang Bin’s villa where just last night she had conducted her interview, eaten Yang Bin’s dishes and chatted with him. But the villa was deserted now.
The morning breeze made a mess of her hair, but she seemed unaffected. She just stood there, watching silently. Was this the “China girl with the look of a steel-willed career woman, who walks on Wall Street with brisk, confident and firm steps, a loose-leaf binder in one hand and a hot coffee from a street side café in the other, dressed in a posh Giorgio Armani suit and high heels, her jet-black hair rolled up neatly in a bun?” (Excerpted from Special Girl, an article on the web describing her)
Zeng Zimo once wrote that “a Beijing morning is happy, curious and expectant,” “a Dartmouth morning tough, lonely and determined”, “a New York morning bright, wild and passionate”, “a Hong Kong morning changeable, composed and confident.” But how might she describe this Holland Village morning, I wondered?
I got my answer later, when I read her memoir, Ink Marks:
“The day Yang Bin was summoned for questioning, my colleagues and I went again to Holland Village. As big as it was, it was deserted. Gone were the police and Euro-Asia staff. There was not a soul on the boulevard, just that massive windmill rotating slowly all alone in the breeze.
An image suddenly occurred to me: Yang Bin gambling in a casino, high stakes at risk with every throw of the dice…in fact, hadn’t Yang Bin’s entire life been a gamble? From Holland to Poland, from Shenyang to North Korea—since it was a wager, there had to be winners and losers. He should understand this better than anyone else.”
This autumn morning in the north was sunny and cloudless. Even though the sun had risen, the morning breeze was still cool. I was in no mood to enjoy the European facades, the Dutch windmill or glass greenhouses. So I returned to Yang Bin’s living room again, sitting on the sofa, smoking, and wondering why things had come to this. I couldn’t find a quick answer. Memories of the past came to my mind one after another, all the people and the events, and I kept trying to find the fatal flaw, the answer.
At 6:00 am that day, South Korea TV news reported that “Yang Bin, the SAR Chief Executive, has been taken away by police in China’s Shenyang.” Major TV stations, newspapers and websites worldwide reported this development. Their source was most likely those South Korean bankers and the South Korea Consulate.
At 8:00 am, we took breakfast together. At the table were Li Gang and Shi Jun from the Euro-Asia Group, North Korean diplomat Hwang Myong Chol (his first meal for months with us without Yang Bin), Ma Ning, Wang Hui-Dong, Yang Da-Yong and I.
“After President Yang was taken away by the police (at 5:15 am), Marshal Kim learned of it at six a.m,” said Hwang. “Director Kim in Sinuiju was also informed. He said this move wasn’t aimed at President Yang, but at us.” After finishing this sentence, he looked at us sadly. We all kept silent.
“Ever since Yang Bin first came into the public eye, from his family background, how he earned his first ‘pot of gold’, to his appointment as Chief Executive of the Special Administrative Region, Yang Bin has always been a mystery,” Zeng Zimo later commented in Ink Marks. “He is also a legend, the legend of an orphan who became a tycoon, the legend of a poor overseas student who became the Chief Executive of a Special Administrative Region. The truth behind all this probably doesn’t matter much. What matters is who created this illusory legend. Yang Bin, or us? Or is it the product of the confused and complicated era of transformation in which we are living?” (6)
At 10 a.m., Yang Bin’s eldest aunt Yang Feng-Qu and his fourth aunt Yang Feng-Lin tried to visit him at Shenyang Police Station. But since Yang Bin had been summoned for questioning that was still underway, said the police, no one would be allowed to visit him. Allowed to deliver some basic necessities, they left him some underwear and State Express 555 cigarettes.

Footnotes:

1. This quote is based on notes I took during the Sep 19 press conference.

2. On October 6, Yang Da-Yong and I talked with a North Korean official over a meal at Holland Village’s Hague Hotel. The official admitted that North Korea was “responsible” for Yang Bin’s inability to keep his promise to the effect that "foreigners will be allowed to enter Sinuiju visa-free beginning September 30 ". He confided that “a member of our delegation made such a promise to President Yang. But it turned out to be more complicated than we thought. The border walls have not been built yet…”

3. Yang Bin’s words here are based on notes I took during the first meeting of the Sinuiju SAR Preparatory Committee.

4. These details are based on notes I took during the first meeting of the Sinuiju SAR Preparatory Committee on Sep 29.

5. Descriptions of the friendship between Yoshiharu Akahoshi and Yang Bin are based on their conversations at banquets in which I participated, and my own conversations with and e-mails from Akahoshi.

6. Refer to page 254 of Ink Marks by Zeng Zimo. Hong Kong Ming Pao Press. (Nov 2007).