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. -------------- 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. -------------- 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