The President’s Daily Brief

October 30, 1976

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North Korea is trying to limit damage from the highly publicized expulsion of diplomatic personnel from the Scandinavian countries this month for trafficking in narcotics, duty-free liquor, and cigarettes.

North Korea has acknowledged privately that some of its representatives engaged in illegal activities. The North Koreans have withdrawn ambassadors and staff members as requested, refrained from retaliatory acts against Scandinavian officials in Pyongyang, and replaced the ousted diplomats.

Activities similar to those uncovered in Scandinavia have been reported on a smaller scale in Malaysia, Burma, Switzerland, Egypt, and Argentina. The illegally acquired funds have been used to help defray operating expenses for North Korea's embassies and trade missions as well as to finance intelligence and propaganda activities abroad.

The Scandinavian countries have noted that they do not wish the expulsions to disrupt good relations with North Korea.

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