JAPANESE PRIME MINISTER AFFIRMS COOPERATION IN

UNCLAS SECTION 01 OF 02 HANOI 001124

SIPDIS

SENSITIVE

STATE FOR EAP/BCLTV AND EAP/J

E.O. 12958: N/A
TAGS: PREL PTER ETRD EAID ECON PGOV JA VM CTERR
SUBJECT: JAPANESE PRIME MINISTER AFFIRMS COOPERATION IN
-- SECURITY AND COUNTERTERRORISM


1. (SBU) SUMMARY. PRIME MINISTER JUNICHIRO KOIZUMI
AFFIRMED JAPAN'S SUPPORT FOR BILATERAL COOPERATION IN
SECURITY AS PART OF AN ENHANCED JAPAN-ASEAN RELATIONSHIP AND
OFFERED NON-MILITARY COOPERATION ON COUNTERTERRORISM DURING
AN APRIL 27-28 VISIT TO HANOI. PRIME MINISTER PHAN VAN KHAI
ASKED FOR INCREASED AID AND A BILATERAL TRADE AGREEMENT, BUT
KOIZUMI DID NOT RESPOND POSITIVELY TO EITHER REQUEST. WHILE
NO NEW AGREEMENTS WERE SIGNED, THE TWO COUNTRIES AGREED TO
ENHANCE BILATERAL TIES THROUGH CONTINUED ECONOMIC AND
POLITICAL DIALOGUE AND ACTIVITIES. END SUMMARY.

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BILATERAL COOPERATION INCLUDES SECURITY
--------------


2. (U) IN HANOI, PM KOIZUMI PAID COURTESY CALLS ON
PRESIDENT TRAN DUC LUONG AND GENERAL SECRETARY OF THE
COMMUNIST PARTY OF VIETNAM NONG DUC MANH, AS WELL AS HELD A
MORE SUBSTANTIVE MEETING WITH HIS COUNTERPART, PM KHAI.
ACCORDING TO JAPANESE EMBOFFS, THE TWO PRIME MINISTERS
DISCUSSED BILATERAL COOPERATION IN A NUMBER OF AREAS,
UNCLASSIFIED

PAGE 03 HANOI 01124 01 OF 02 061033Z
LARGELY AS A BILATERAL APPLICATION OF AND FOLLOW-UP TO PM
KOIZUMI'S FIVE-POINT INITIATIVE FOR GREATER JAPAN-ASEAN
COOPERATION FIRST ANNOUNCED LAST JANUARY IN SINGAPORE. THE
ELEMENTS OF THIS COOPERATION INCLUDE (1) A COMPREHENSIVE
ECONOMIC PARTNERSHIP; (2) DESIGNATION OF THE YEAR 2003 AS
THE YEAR OF JAPAN-ASEAN EXCHANGES, ESPECIALLY IN LIGHT OF
THE 30TH ANNIVERSARY OF JAPAN-VIETNAM RELATIONS; (3) THE
INITIATIVE TO DEVELOP EAST ASIA (IDEA); (4) COOPERATION IN
EDUCATION AND HUMAN RESOURCES DEVELOPMENT; AND (5)
COOPERATION ON TRANSNATIONAL ISSUES SUCH AS SECURITY,
PIRACY, DISEASE, ENVIRONMENT, NARCOTICS, AND HUMAN
TRAFFICKING. KOIZUMI PLEDGED TO HOST RELEVANT MEETINGS AND
WORKSHOPS IN THESE AREAS, EMBOFFS SAID.


3. (SBU) PM KOIZUMI ALSO TOLD PM KHAI THAT JAPAN COULD NOT
PROVIDE MILITARY COOPERATION AGAINST TERRORISM DUE TO
CONSTITUTIONAL CONSTRAINTS, BUT COULD HELP WITH BUDGET
ASSISTANCE AND INFORMATION SHARING, AREAS JAPAN ALSO
"CONSIDERS IMPORTANT." PM KOIZUMI EXPRESSED APPRECIATION
FOR AND "ENCOURAGED" VIETNAM'S CONTINUED PARTICIPATION IN
AFGHAN RECONSTRUCTION, NOTING ESPECIALLY VIETNAM'S
ATTENDANCE AT THE TOKYO PLEDGING CONFERENCE WHERE VIETNAM
PROMISED USD 300,000 OF MATERIEL ASSISTANCE. PM KOIZUMI
ALSO THANKED VIETNAM FOR ALLOWING THE JAPAN DEFENSE FORCES
TO FLY OVER VIETNAM EN ROUTE TO PAKISTAN.


4. (SBU) THE TWO SIDES AGREED TO MAINTAIN AND POSSIBLY
"STRENGTHEN" A BILATERAL POLITICAL DIALOGUE. AFTER A HIATUS
OF SEVERAL YEARS, BILATERAL DISCUSSIONS AT THE VICE FOREIGN
MINISTERIAL LEVEL TOOK PLACE IN APRIL 2002 IN HANOI.
ACCORDING TO EMBOFFS, BOTH SIDES ARE NOW DETERMINED TO
UNCLASSIFIED

PAGE 04 HANOI 01124 01 OF 02 061033Z
RESUME THIS PROCESS IN ALTERNATING CAPITALS AT LEAST EVERY
OTHER YEAR.

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TRADE/ODA OUTLOOK GOOD
--------------


5. (U) ASIDE FROM SECURITY AND COUNTERTERRORISM, PM
KOIZUMI'S MEETINGS WITH THE GVN LEADERSHIP ALSO TOUCHED ON
ECONOMIC AND ODA ISSUES. ACCOUNTS FROM EMBOFFS AND PRESS
REPORTS INDICATED THAT THE GVN LEADERSHIP IS "VERY KEEN" TO
CONCLUDE A BILATERAL TRADE AGREEMENT, WHILE JAPAN IS NOT
PARTICULARLY INTERESTED BECAUSE JAPAN ALREADY GRANTS VIETNAM
MOST FAVORED NATION TREATMENT. FURTHER, THE GOJ IS
CONCERNED THAT VIETNAM IS MOSTLY INTERESTED IN EXPORTING
MORE AGRICULTURAL PRODUCTS TO JAPAN, A SENSITIVE DOMESTIC
POLITICAL ISSUE, ACCORDING TO EMBOFF. PM KOIZUMI REPORTEDLY
AGREED WITH PM KHAI TO PUSH TO CONCLUDE A BILATERAL
INVESTMENT PROTECTION AGREEMENT, HOPEFULLY "BY THE END OF
THE YEAR." (NOTE: THERE HAD BEEN RUMORS THIS AGREEMENT
MIGHT BE A DELIVERABLE FOR THIS VISIT. END NOTE)


6. (U) CONCERNING ODA, WHILE JAPAN HAS CUT ITS WORLDWIDE
ODA BUDGET, JAPAN PLEDGED LAST DECEMBER AT THE ANNUAL
DONOR'S CONFERENCE TO INCREASE ODA TO VIETNAM BY SIX
PERCENT. ACCORDING TO PRESS REPORTS, JAPAN HAS PROVIDED USD
7 BILLION OVER THE PAST DECADE, 40 PERCENT OF THE TOTAL OF

UNCLASSIFIED

UNCLASSIFIED PTQ1604

PAGE 01 HANOI 01124 02 OF 02 061033Z
ACTION EAP-00

INFO LOG-00 NP-00 AID-00 A-00 ACQ-00 CA-01 CCO-00
CEA-01 CG-00 CIAE-00 COME-00 CTME-00 DOEE-00 ITCE-00
DOTE-00 SRPP-00 DS-00 EB-00 EXME-00 OIGO-00 E-00
FAAE-00 FBIE-00 UTED-00 VC-00 FRB-00 H-01 TEDE-00
INR-00 INSE-00 ITC-01 LAB-01 L-00 VCE-00 M-00
AC-01 NRCE-00 NSAE-00 OCS-03 OES-01 OMB-01 OPIC-01
PA-00 PM-00 PRS-00 ACE-00 P-00 SCT-00 SP-00
SSO-00 SS-00 STR-00 TEST-00 TRSE-00 USIE-00 USSS-00
ASDS-01 EPAE-00 PMB-00 DSCC-00 DRL-02 G-00 NFAT-00
SAS-00 /015W
-------------- AA722D 061033Z /38
R 061018Z MAY 02
FM AMEMBASSY HANOI
TO SECSTATE WASHDC 6378
INFO AMCONSUL HO CHI MINH CITY
AMEMBASSY TOKYO
AMEMBASSY JAKARTA
AMEMBASSY CANBERRA
AMEMBASSY PHNOM PENH
AMEMBASSY BANGKOK
AMEMBASSY VIENTIANE
AMEMBASSY WELLINGTON
USCINCPAC HONOLULU HI
NSC WASHDC
SECDEF WASHDC//ISA/ABLAGG//

UNCLASSIFIED

PAGE 02 HANOI 01124 02 OF 02 061033Z
UNCLAS SECTION 02 OF 02 HANOI 001124

SIPDIS

SENSITIVE

STATE FOR EAP/BCLTV AND EAP/J

E.O. 12958: N/A
ALL FOREIGN DONORS. JAPAN WILL CONTINUE ODA IN AREAS SUCH
AS INFRASTRUCTURE, HUMAN RESOURCES TRAINING, POVERTY
REDUCTION, AND ENVIRONMENTAL PROTECTION. PM KOIZUMI TOLD PM
KHAI THAT THE DIFFICULT ECONOMIC SITUATION IN JAPAN WOULD,
HOWEVER, PRECLUDE ANY INCREASES, AND HE ADVISED THE GVN TO
PRIORITIZE ITS PROJECTS AND USE JAPAN'S ODA AS EFFICIENTLY
AS POSSIBLE.


7. (U) ACCORDING TO PRESS REPORTS, JAPAN IS NOW VIETNAM'S
LARGEST TRADING PARTNER (USD 5 BILLION IN 2001),LARGEST
DEVELOPMENT ASSISTANCE DONOR, AND THE THIRD LARGEST
INVESTOR, AFTER SINGAPORE AND TAIWAN. JAPAN'S INVESTMENTS
IN VIETNAM INCLUDE INDUSTRY, AGRICULTURE, FORESTRY, POST AND
TELECOMMUNICATIONS, AND HOTEL SERVICES. IN ADDITION, ABOUT
220,000 JAPANESE TOURISTS VISITED VIETNAM, A NUMBER EXPECTED
TO INCREASE WITH THE NEWLY INTRODUCED DIRECT AIRLINKS
BETWEEN HANOI/HO CHI CHI MINH CITY AND TOKYO.


8. (U) THE GVN INVITED JAPAN'S EMPEROR TO VISIT, WHICH
EMBOFFS NOTED SEEMS DOUBTFUL. A LOWER LEVEL ROYAL VISIT IS
POSSIBLE "WITHIN A YEAR" BUT NO DATES HAVE BEEN SET. PM
UNCLASSIFIED

PAGE 03 HANOI 01124 02 OF 02 061033Z
KOIZUMI ALSO INVITED GENERAL SECRETARY MANH TO VISIT JAPAN,
WHICH HE MAY DO "THIS AUTUMN," ALTHOUGH NO DATES HAVE BEEN
SET.
BURGHARDT

UNCLASSIFIED