Kim Dae Jung, President of South Korea, arrived in Washington to meet with President Clinton and speak before a joint session of Congress. Following a background report, Jim Lehrer speaks with President Kim about his country's relations with North Korea and the current Asian economic crisis.

JIM LEHRER: Mr. President, welcome. You have suggested that the United States consider lifting sanctions against North Korea. Why?

KIM DAE-JUNG, Korean President: Well, that is very imperative to let North Korea open door to outside. As far as I know, there is two groups in the North, hardliners and the moderate. So moderate is insisting that North Korea should open door to outside. Otherwise there will be no hope for North Korea in the future, but at this stage hardliner is stronger than the moderate. So such a sanction gives a good excuse for hardliners to maintain present isolation. And also, as you see, when we take up the Soviet Union case, and the China case, and the Vietnam case, America has maintained a, you know, flexible policy, backed by a strong security posture. So such a flexible policy made those countries open door, and finally America succeeded. So I think if we, you know, develop such a flexible policy, then there is much possibility that we can make North Korea open door, and in Korea our government is now, you know, implementing such a policy. There is some sign that North Korea is changing recently. There is ongoing successful negotiation to have a military talk to Pyongyang, which has been stopped for seven years. And North Korea is now willing to allow Korean top businessmen to visit North Korea with 500 cows on the truck. So American, you know, American people may watch that scene through TV in the near future, this month. So that's why I am, you know, encouraging American government to be flexible to North Korea, together with us. But absolute condition is we must maintain a firm security posture against North Korea, against any kind of possible aggression.

JIM LEHRER: Do you believe that the sanctions should be lifted unilaterally, or should North Korea do something in exchange? In other words, we lift the sanctions, North Korea, you do such-and-such, or just do it and see what happens?

KIM DAE-JUNG: This problem of negotiation for the U.S., the U.S. can propose North Korea, we are ready to lift sanction to such a degree, and then you can have a much more moderate attitude such as you should have dialogue with South Korea. Then we can have a further lifting of the sanction, so with this problem of negotiation.

JIM LEHRER: What is your own view of the North Korean people? Do you see them as the enemy, or do you see them as brothers and sisters who have gone wrong, or help us understand how we should see North Korea based on how you see North Korea.

KIM DAE-JUNG: Ethnically speaking, they are brothers. But as a communist, they are our enemy. We never allow in our the communization of South Korea, we never allow any aggression by North Korea to us in South Korea.

JIM LEHRER: In your dream world, do you see North and South Korea coming together again? Is that your goal?

KIM DAE-JUNG: We are - at this stage, you know, unification is not my government's goal. To realize peace on the Korean peninsula, and to develop exchange, cooperation between both Koreas, they are the, you know, immediate target of our government. Unification is not our present goal. That is a future program.

JIM LEHRER: Now what is your reading now about how serious the famine and other problems are in North Korea? Is the country close to collapse? What is your reading of that?

KIM DAE-JUNG: It is a closed-door country. But as far as I know, there's no immediate sign, no sign of immediate collapse of North Korean regime. But North Korea is very much suffering from economic difficulties, especially shortage of food. So social order is very much wavering. So if North Korea continues present isolation, then with such economic difficulties the North Korean government must meet a very serious situation in the future.

JIM LEHRER: You don't see it in your country's interest, then, for North Korea to collapse, in other words, to not help them - quite just the opposite; to help facilitate their collapse?

KIM DAE-JUNG: I don't think so. Because such immediate collapse means we must take up North Korea. So we are not strong enough to feed North Korea. You know, North Korea situation is far worse than East Germany, and South Korea is weaker than West Germany. So South Korean ability is very much limited to handle North Korean, you know, difficulties. So we don't want to see an immediate collapse of the North Korea regime.

JIM LEHRER: Do you still view North Korea as a military threat to South Korea?

KIM DAE-JUNG: Yes. Yes, much. So we should prepare, together with, you know, the U.S. we should prepare to any kind of possible such military aggression. That is very necessary.

JIM LEHRER: How important are those 37,000 American troops to the situation? Are they going to have to be there forever? When can they come home, if ever?

KIM DAE-JUNG: I think so, because you know Northeast Asia is becoming a very important, you know, region economically, militarily, and politically. And I think American international interest rests much there. So such an American troops presence in Korea in the South and Japan, total some 100,000 should stay there forever, even after unification of Korean peninsula. American presence is, you know, the major cause of balance of power and the stability in this region. You know, even collapse of Soviet Union and East European countries, American still maintains military in Europe to maintain stability and balance of power. Likewise, this Northeast Asia better needs a presence of American troops for a long time.

JIM LEHRER: Even if there was peace between North and South Korea, even if there was reunification, you think the U.S. should still have a presence in Korea?

KIM DAE-JUNG: Unification is one thing, and stability in Northeast Asia is another thing. If America would withdraw from South Korea, there could be a power struggle between such as China and Japan. That's a problem. I think that will also great damage American national interest. So for mutual interest, I do want American presence in this region.

JIM LEHRER: Have the nuclear tests by Pakistan and India affected the North Korean situation, the North Korean nuclear situation, from your perspective, from the South Korean perspective?

KIM DAE-JUNG: We are - there may be a psychological influence of North Korea, but North Korea can hardly commit the production of a nuclear weapon, unlike Pakistan or India, because North Korea knows our determination, you know, by the U.S., Japan, and South Korea, our determinations are so strong, if North Korea, you know, started to have such a nuclear weapon, then North Korea must meet the serious reaction from our side. And also, we are providing, you know, a nuclear power plant in the north, two light water systems, so some 4 or 5 billion dollars we are providing to meet with North Korean requests on the condition North Korea will not produce a nuclear weapon. So I don't think North Korea can immediately take any measure to produce a nuclear weapon. It is impossible for North Korea.

JIM LEHRER: Your economy - we'll talk about the South Korean economy. One of the purposes of your trip here, in fact, is to give us your assessment of where you are. Do you still consider it to be in a state of crisis?

KIM DAE-JUNG: I don't deny there are some possibility of a crisis. But, you know, foreign exchange crisis has been much reduced. But there is a problem of unemployment. Some 6.7 percent, 1.5 million unemployment problem. So now we are pushing economic reform, bank reform and enterprise reform. So we can finish that reform this year, in September or October. Then our economy may be much more, you know, normalized.

JIM LEHRER: Mr. President, what would you say to Americans in Congress and elsewhere who are seriously questioning whether or not the U.S. has a vital interest through the IMF, through the International Monetary Fund, helping South Korea and other Asian nations pull out of this crisis. What would you say to the average American why their money should be at risk to help you and your country?

KIM DAE-JUNG: Such Asian economic situation is directly linked to American economy, and also IMF has made a good role, a political role in Korea, because it has very much encouraged South Korean government to practice, you know, market economy from the past also authoritarian economic system, unfair economic system. So I think we are now pushing but there are a distance from, you know, groups. But such IMF pressure is very much helpful for me to push such a, you know, reform. So in this sense I think IMF is very much helpful for alien society. I think a major cause of present Asian economic difficulties that mainly come from, you know, lack of market economy. So IMF absolute condition is to produce a market economy. So in this sense I am - I think IMF is helpful.

JIM LEHRER: Mr. President, finally, a personal question; you are now the president of your country. You were a dissident, you were imprisoned, you were harassed, you were almost killed by the government that you now run. Are you comfortable in this position now? Do you feel like you're running this government and this country?

KIM DAE-JUNG: Yes, I wanted to become president because I had, you know, a plan and ambition to practice, you know, good politics. But when I was elected, there's such a financial crisis out of my expectation, so I am now, you know, suffering from such difficult conditions. But I really believe I can manage this situation. And if we succeed this year to realize reform in various fields, then from next year there ought to be some hope for our country.

JIM LEHRER: A lot of Americans compare you with Nelson Mandela, president of South Africa. Do you have a model or a hero or somebody that you are trying to pattern your life now as president after?

KIM DAE-JUNG: I don't know and I don't think I can be compared with such. Mandela is a great leader but I have a strong determination that democracy and market economy should be implemented. So in Asia I want to make - I want to succeed to make a model of what success, practicing democracy, and market economy. Then that will give a good influence over Asian countries. That is my ambition.

JIM LEHRER: Mr. President, thank you very much.

KIM DAE-JUNG: You're welcome.