The Chaebol Returns To The Presidency 1967 [EN]: Chapter 62

62. Block 7

Takase said,

“In particular, the Okinawan people harbor deep-seated feelings of victimhood stemming from World War II, and their war trauma is profound. To address this, we propose withdrawing the U.S. military and nuclear weapons, while maintaining the U.S.-Japan Security Treaty’s effect on Okinawa. Even after Okinawa’s reversion to Japan, the U.S. military would retain the tacit understanding to introduce nuclear weapons into Okinawa in emergencies. Furthermore, the U.S. military in Japan could utilize its bases without prior consultation in the event of a Korean Peninsula crisis.”

“Hmm….”

“Instead of completely removing nuclear weapons from Okinawa, the United States and Japan would establish a joint maritime force. Japan would actively participate and fully fund this force, faithfully fulfilling its security responsibilities.”

“Hmm, so even with the U.S. military’s withdrawal, war deterrent forces could still be moved, deployed, and redeployed at the United States’ discretion in an emergency.”

“That’s correct.”

“Hmm, this is quite an advanced proposal. It warrants discussion with the top brass.”

Takase then presented a significant incentive.

“Upon the Okinawa reversion agreement, the Japanese government will provide $320 million in official fees for the U.S. withdrawal.”

“Ah, that’s a substantial sum.”

“That’s merely the official figure. We will also provide an additional $120 million in secret funds separately.”

Linger visibly swallowed hard at the mention of secret funds.

It was a massive bribe, difficult to refuse.

The secret talks with the Prime Minister’s special envoy concluded amicably.

During Chairman Wang’s era, Nixon, influenced by Japan, announced the Nixon Doctrine. However, he didn’t alter the U.S. military presence in Japan, only declaring the withdrawal of U.S. forces from Korea.

Japan aimed to secure its position as a strategic ally of the United States and revise the Peace Constitution, acting as East Asia’s last defense against Soviet and Chinese expansion.

Conversely, the President only accurately recalled Okinawa’s return in 1972 during Chairman Wang’s tenure. Having left Korea in 2009 when the secret agreement was revealed, he only knew the U.S.-Japan secret agreement as a news headline.

If Kennedy were elected and this secret agreement formally ratified, the geopolitical landscape of Northeast Asia would be dramatically reshaped.

* * *

The Blue House, the President’s office.

The President urgently summoned the Ambassador to the United States and was in conversation with him.

The President’s complexion was grim as he listened to the ambassador’s report.

“Kennedy’s aides are pro-Japanese?”

“Yes, Your Excellency. The leading candidates for Secretary of State, Secretary of Defense, and Secretary of Foreign Affairs all lean towards Japan.”

Linger’s aide was nominated as Secretary of State.

“Your Excellency, they’ve received as much as $20 million in political donations through Japanese companies operating in the United States.”

“$20 million?”

“They’ve essentially bought influence in Washington with money.”

“Hmm, those cunning Japs!”

Despite his closeness to Kennedy, the US President’s room for maneuver would be limited if his cabinet was filled with pro-Japanese figures.

Since the United States permits political lobbying, money became a powerful weapon.

Korea couldn’t compete with Japan’s dollar reserves.

It was a highly unfavorable situation on the diplomatic front.

“Ambassador, why do you believe they are investing so heavily in the United States?”

“Well, I’m not certain….”

“They must have an agenda.”

“…….”

“Ambassador!”

“Yes, Your Excellency!”

“Discover Japan’s intentions, regardless of the cost.”

“I understand, Your Excellency!”

The President issued the same instructions to the Ambassador to Japan.

* * *

The Blue House, the President’s office.

The President was speaking with President Chung.

The President reminisced about Chairman Wang’s time.

“Block 7 is at risk of being handed over to Japan in 2028 without any drilling ever taking place, all due to Japan’s opposition.”

President Chung expressed his dismay.

“Oh, no! Block 7 is about to fall into Japanese hands!”

In May 1970, Korea initially declared its sovereignty over Block 7.

Although the area was geographically closer to Japan, international law at the time was based on the ‘continental shelf extension theory’ [a principle that extends a nation’s territorial waters to include the submerged prolongation of its land territory], which recognized territorial waters where the continental shelf in the sea continued as territory. President Park spearheaded this initiative.

Block 7 refers to the continental shelf located in the sea between the south of Jeju Island and the west of Kyushu. According to a UN survey, the estimated reserves of oil and gas were 7.2 billion tons, comparable to the Black Sea oil field.

Naturally, Japan vehemently opposed Korea’s incorporation of Block 7 into its territory.

However, Korea lacked the necessary exploration technology and capital at the time.

Initial attempts to explore it independently ended in failure.

In the early 1970s, with the global oil shock, they couldn’t afford to wait. So, in 1974, they signed the Korea-Japan Continental Shelf Agreement to jointly develop the area with Japan.

According to the agreement, Korea and Japan would jointly undertake exploration and development in this zone.

In other words, neither party could unilaterally proceed with resource exploration and extraction.

The agreement establishing the Korea-Japan Joint Development Zone (JDZ) came into effect in 1978 and is set to expire in 2028 after 50 years.

At the time, it was a desperate measure to counter Japan’s solo exploration and mining efforts, given their capital and potential technology.

But Japan employed delaying tactics. After stalling with several exploration attempts, they collaborated with China in 2009 and shifted to the 200 nautical mile law [an international maritime law defining a country’s exclusive economic zone].

Since Okinawa was also Japanese territory, Block 7 was immediately incorporated into Japanese territorial waters.

Japan has been dragging its feet, citing a lack of economic feasibility, without exploring or drilling, until 2028, when the joint development treaty expires.

Meanwhile, China has also laid claim to the development rights of Block 7, asserting that Diaoyu Island (Senkaku Islands) and Taiwan are its territories.

President Chung stated.

“It’s absurd that they switched to the 200 nautical mile law!”

The President said.

“Japan, having gained control of international maritime organizations, the UN Commission on the Limits of the Continental Shelf (UN CLCS), and the International Court of Justice, manipulated the law to their advantage.”

“Ah, if we could only develop Block 7, Korea’s national fortune could be transformed….”

“Therefore, in this timeline, we must prevent such mistakes and develop it independently, excluding Japan.”

“That’s right. But Korea lacks drilling ships, capital, and the necessary drilling technology, doesn’t it?”

“We must prepare now. We need to acquire drilling capabilities as quickly as possible. The real challenge lies in diplomacy.”

“Diplomacy!”

“We have to prevent the return of Okinawa. Japan has leveraged the yen to dominate the international diplomatic stage, making changes to maritime territorial law standards easy for them. If an international dispute arises, Japan will inevitably hold an absolute advantage. Unfortunately, Korea is a developing country, while Japan is a developed one.”

“Ah, I see. International organizations won’t side with Korea. Your Excellency, diplomacy is about money. How do you plan to counter Japan?”

“An eye for an eye, a tooth for a tooth, money for money.”

“Yes? Money? I don’t believe we can compete with Japan financially.”

“We possess Block 7, don’t we?”

“It will take over 10 years to explore and develop Block 7. In the meantime, international law could change.”

“In situations like this, an entrepreneurial mindset is required.”

“…….”

“Entrepreneurs secure loans using physical assets as collateral. Block 7 is currently an excellent form of collateral security.”

“Collateral….”

President Chung was speechless at the former business tycoon’s idea.

The President said.

“Korea is still limited in its perspective. But we must break through with diplomacy. We need to offer trade terms that other countries will find irresistible.”

“…….”

The President prepared meticulously.

But Japan was a rising superpower at the time, cunning and meticulous.

* * *

The Minister of Foreign Affairs reported to the President.

The President instructed him to obtain the results of the continental shelf exploration in the East China Sea from the UN.

The Minister reported the findings today.

The Minister’s voice was excited.

“Your Excellency! I have good news!”

“Report it quickly.”

“As Your Excellency instructed, the UN Asia Development Committee has released the results of the resource exploration of the continental shelf in the East China Sea. They’ve concluded that there’s a high probability of the world’s largest oil resource reserves being buried in the East China Sea, stretching from Taiwan to Okinawa, Japan. They predict reserves equal to or greater than the Black Sea oil field.”

“That’s excellent news. Do not disclose this information to anyone outside.”

“I understand, Your Excellency!”

However, Japan, having used its financial influence to control the UN and international organizations in pursuit of a permanent seat on the UN Security Council, was likely already aware of this fact.

* * *

The Japanese Prime Minister’s official residence.

The Minister of Economy, Trade and Industry reported the findings of the continental shelf crude oil deposit exploration.

The Prime Minister’s face hardened upon hearing the report.

“If Korea discovers this and declares it as their territorial waters, it will be very problematic.”

“That’s correct. But even if they know, Korea lacks the means to do anything about it.”

“Why?”

“Because they lack the technology and capital to explore and drill for offshore crude oil. Only the United States and the United Kingdom possess that technology.”

“Hmm, that’s true, but if it’s incorporated into Korean territory, they will drill someday.”

“That’s right.”

“It’s difficult to mine immediately, but we must find fundamental solutions beyond temporary measures.”

“I have a viable solution.”

“What is it?”

The Prime Minister looked at the Minister expectantly.

“Your Excellency, we can change the law.”

“How can you change the law?”

“It’s simple to shift from the current continental shelf extension standard to the 200 nautical mile standard. Since Okinawa and Senkaku are our territories, almost all of Block 7 will be incorporated into the territory of Greater Japan.”

“Oh, that’s a very fundamental approach! But can we alter the international standard?”

“The United States won’t be particularly interested, and lobbying should be sufficient to secure their support. We must also bring China on board.”

“Why China?”

“China, being adjacent to Block 7, will have a strong interest. It will be impossible if China opposes it. First, we must offer China an incentive.”

“Yoshi! That’s a good idea. Let’s put it into action.”

“Hai, Your Excellency!”

“Now the return of Okinawa is becoming even more urgent.”

* * *

Ulsan Mipo Shipyard.

In the shipyard dock, a used semi-submersible oil drilling ship (drillship) [a specialized vessel used for offshore drilling] purchased from the United States for approximately $5.11 million (approximately 5.6 billion won) was docked.

It was a used ship on the verge of being scrapped, imported by the newly established Korea National Oil Corporation.

At the time, they lacked the capacity to build oil drilling ships, so the President ordered the import.

The President, President Chung, and the President of the Korea National Oil Corporation inspected the facilities on the massive deck.

The President of the Corporation explained.

“It’s a semi-submersible drilling ship with a working water depth of 150~1,500ft (approximately 45~450m) and a maximum drilling capacity of 25,000ft (approximately 7,500m). If we repair it properly, we can put it to use.”

The President instructed the President of the Corporation.

“We will be drilling in our South Sea continental shelf in the future. Invite overseas technicians to operate it at the Hyundai Shipyard and learn the drilling technology as quickly as possible.”

“I understand, Your Excellency!”

In reality, the oil drilling ship was initially acquired on an installment basis, lacking both the technology and manpower to operate it.

The immediate priority was to preempt drilling. The strategy was to establish a presence first and simulate drilling operations.

“President Chung!”

“Yes, Your Excellency!”

“President Chung, please reverse engineer this drilling ship and manufacture our own drilling ships.”

“Yes, Your Excellency.”

Offshore drilling is a game of probability, so the more drilling ships available, the shorter the exploration time can be.