US Asks $500M for Ammunition Stockpile

The U.S. is asking for $500 million in exchange for its Korean War Reserve Stocks for Allies (WRSA) stockpile of ammunition and military supplies. It is America’s first public disclosure of an offer price for the supplies.

WRSA transfer talks between Korea and the U.S. are expected to start next month.

According to a military source on March 23, the Military Assistance Program (MAP), which is handling the WRSA transfer, met with officials of the Defense Security Cooperation Agency (DSCA) under the Defense Department, the U.S. Pacific Command and the State Department, and decided to write off the $5.3 billion in WRSA items, including $639 million worth of ammunition, $1.17 billion in expendables, and other items worth $1.2 billion.

If Korea refuses this offer after the U.S. initially suggested a price tag of $2 billion, the U.S. offer will likely be around $500 million at minimum, depending on the disposal costs of the ammunition and equipment.

Until now, people concerned in the military have estimated the cost of purchasing WRSA items except for old ammunition at about one trillion won.

An official of the military said, “After the legislation on WRSA disposal was signed by President Bush and took effect late last year, the U.S. has been trying to come up with a scheme to move old ammunitions and equipment to U.S. soil or overseas and have them disposed of, excluding items to be transferred to Korea. However, considering the enormous cost to transport the equipment, the U.S. is also reviewing a plan to dispose of it in Korea.”

Meanwhile, the Korean Defense Ministry plans to buy ammunition it needs from the WRSA, and is making a want list.

Taiwan and the Philippines were the beneficiaries of free and cheap ammunition and equipment when their respective WRSA programs were terminated.

The Defense Ministry has made it clear that it will proceed with the negotiations in consideration of Korea’s national interests and alliance with the U.S.

In June, 2004, then-U.S. Deputy Secretary of Defense Paul Wolfowitz notified Koran Defense Minister Cho Young-gil that the WRSA termination would run through the end of 2006.

Sang-Ho Yun ysh1005@donga.com