South Korea Reportedly Agrees to Take Part in Soviet Gas Project

The Soviet Union and South Korea agreed today to broad new economic cooperation and a joint multibillion-dollar natural gas development project in the Soviet Far East, state-run KBS television reported.

The Soviet Union also reaffirmed its position that if North Korea refuses to sign the nuclear safeguard treaty it will suspend supplies of nuclear fuel, technology and other help to its longtime Communist ally, KBS said.

The agreements came during today’s summit talks between Soviet President Mikhail S. Gorbachev and South Korean President Roh Tae-woo.

Gorbachev is the first Soviet head of state ever to visit the divided Korean Peninsula and his trip has angered Moscow-backed Communist North Korea which views South Korea as an archenemy.

Arriving late Friday at this resort island on the last stop of an Asian tour, Gorbachev was greeted by thousands of cheering residents. But students who believe his visit could antagonize the Communist north staged angry protests.

The project for the development of natural gas in Sakhalin Island would involve a consortium of Korean companies along with U.S. firms, said the highly placed sources. An official for the powerful Hyundai Group, which was deeply involved in the plans, said the project was uncertain because it required a pipeline through Communist North Korea.

In January, South Korea agreed to a $3-billion loan package and dozens of Korean firms are scrambling to form ties in the Soviet Union with the full encouragement of Seoul.