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North Korea Celebrates Founding With No Sign of Party Congress, Successor

North Korea celebrated its founding today with no indication of whether the nation has begun its first party congress in 30 years, which may endorse a dynastic transfer of power in the impoverished Stalinist state.

Flags and signs extolling the “thriving nation” were hung throughout the streets of Pyongyang, decorated with electric lights, the official Korean Central News Agency reported today. Restaurants, “decked in festive attire,” served national dishes as art troupes gave performances, KCNA said.

Leader Kim Jong Il has been receiving floral baskets and gifts from across the country and overseas this week congratulating him for marking the 62nd anniversary of the nation’s establishment, state media reported. He watched art performances twice this week, according to KCNA, which disclosed no connection with the planned party congress.

North Korea hasn’t set a date for the gathering, saying June 26 the party will meet early this month to elect “its highest leading body.” The announcement sparked speculation Kim may seek to use the forum to anoint his youngest son as heir, just as the last meeting in 1980 cemented his position as successor to his father Kim Il Sung, the country’s founder.

“It appears a party congress is imminent given all the preparations under way,” South Korea’s Unification Minister Hyun In Taek told lawmakers yesterday in Seoul. “It is still difficult to guess exactly when it will be convened.”

Economic Deterioration

Kim Jong Il, 68, last month made his second trip this year to China in what analysts including the University of Vienna’s Rudiger Frank said was an effort to win his closest ally’s endorsement for transferring power to his son, Kim Jong Un.

Today’s anniversary comes amid further signs of economic deterioration. North Korea has asked South Korea, with which it technically remains at war, for rice and building supplies after two months of floods wiped out crops and damaged houses, South Korea’s Unification Ministry said two days ago.

North Korea’s economy shrank 0.9 percent to 24.7 trillion won ($21 billion) in 2009, with trading falling 11 percent, after the United Nations toughened sanctions against the country for its second nuclear test in May last year, according to the Bank of Korea in Seoul.

There have been mixed reports on the dates of the congress by Seoul-based groups, which cover North Korea by contacting sources in the communist country.

Meeting Delayed

The meeting has been delayed until mid-September because of the floods, with party delegates sent outside Pyongyang to help with relief efforts, North Korea Intellectuals Solidarity, a group of defectors from the North, reported on its website yesterday. It is too early to say the congress was postponed because tomorrow was the earliest intended date, Daily NK, run by activists, said today.

Open Radio for North Korea, another group, said the dates haven’t been specified because of the leader’s ailing health. North Koreans wanted to pick dates depending on Kim’s condition as he would have to attend the meeting for several hours each day, Open Radio reported Sept. 7.

The latest picture of Kim from a meeting with Chinese President Hu Jintao showed he had thinner hair than when he was last seen in May. During this year’s first trip to China, Kim was seen limping and dragging his left foot.

China is North Korea’s biggest economic benefactor and refused to join South Korea, the U.S. and Japan in blaming Kim’s regime for torpedoing one of South Korea’s warships in March, killing 46 sailors. China is also host of the six-nation talks on the North’s nuclear weapons program.

Son Unknown

At a national meeting marking the country’s foundation, North Korean Premier Choe Yong Rim yesterday vowed to counter any attackers with nuclear weapons.

The country “will tap all the military potentials including the self-defensive nuclear deterrent to blow up the stronghold of the aggressors,” KCNA cited Choe as saying.

Little is known outside North Korea about Kim Jong Un, who may be in his late 20s. He attended the International School of Berne in Switzerland, according to media reports, including the Seoul-based Dong-A Ilbo newspaper.

KCNA has never mentioned the son by name and China didn’t say whether he accompanied his father during the most recent visit as speculated by South Korean media. South Korea’s government believes the son traveled to China last month, given security was heavier than usual and Kim’s special train had extra cars, Seoul-based Chosun Ilbo newspaper reported today.

Kim promoted his brother-in-law, Jang Song Thaek, to the No. 2 post of the country’s highest government agency in June, a move that may be aimed at solidifying the transition of power to his son. Jang, who was on the latest trip to China, has been accompanying Kim to most events, according to KCNA reports.

To contact the reporter on this story: Bomi Lim at blim30@bloomberg.net

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