JAPANESE DONATION OF 250,000 METRIC TONS FOR WFP'S

UNCLAS ROME 002854

SIPDIS


SENSITIVE

FROM U.S. MISSION TO THE UN AGENCIES IN ROME

TOKYO FOR AMBASSADOR BAKER AND USDA/FAS COUNSELOR HALE
SEOUL FOR AMBASSADOR HUBBARD AND USDA/FAS COUNSELOR PETTRIE
STATE FOR U/S MGROSSMAN, IO A/S KHOLMES, EAP A/S JKELLY, A/S
PRM ADEWEY, EAP/CM, AND IO/EDA RBEHREND
USDA/FAS FOR U/S JPENN AND MCHAMBLISS
USAID FOR ADMINISTRATOR NATSIOS, JBRAUSE, AA/DCHA RWINTER,
AND DCHA/FFP LLANDIS
NSC FOR JMELINE, MGREEN


E.O. 12958: N/A
TAGS: EAID PREL PREF EAGR ECON KN KS UN
SUBJECT: JAPANESE DONATION OF 250,000 METRIC TONS FOR WFP'S


MSI9614 SECURITY ERROR
NORTH KOREA 2004 EMERGENCY OPERATION

SENSITIVE BUT UNCLASSIFIED - PLEASE PROTECT ACCORDINGLY. NOT
SUITABLE FOR INTERNET POSTING.

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SUMMARY
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1. (SBU) WFP advised US Mission that Japan will donate
250,000 tons of cereals to WFP's 2004 emergency operation
(EMOP) in North Korea, with delivery over the period August-
September/October 2004. The value of the donation is up to
U.S. $80 million. Final details of the transaction have been
sent to the Japanese Cabinet for final approval. The first
shipment could be moving end July-beginning of August. End
summary.

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Background
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2. (SBU) As a follow up to Prime Minister Junichiro
Koizumi's pledge in his May meeting with North Korean leader
Kim Jong Il to provide North Korea with humanitarian aid,
the Japanese government has decided to offer 250,000 metric
tons of food assistance through WFP. The government plans to
give at least 100,000 metric tons of rice, in addition to
wheat and corn. WFP puts the value of the donation at up to
U.S. $80 million. The first shipment of food assistance is
expected to reach North Korea in August.

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Foreign rice or local rice?
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3. (SBU) It is unclear to WFP whether Japan intends to offer
foreign rice, which is reportedly cheaper than domestic
rice. Also unclear is whether the donation will be in one or
two lots. These details are apparently contained in a paper
that has been submitted to the Japanese Cabinet for
approval. Note. Given the reported price of domestic rice
(U.S. $3,000 per metric ton),it is unlikely that domestic
rice would be supplied. End note.

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Other donations to date
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4. (SBU) Through June 28, 2004, against WFP's 2004 emergency
operations appeal for North Korea totaling U.S. $171.3
million (484,445 mts),contribution are as follows: $28.4
million (68,757 mts). Major contributors are: European
Commission-ECHO, $4.98 million (10,989 mts); Australia, $4.3
million (11,337 mts); Canada, $4.5 million (5,817 mts);
Germany, $2.8 million (6,165 mts); and multilateral
unrestricted funding, $8.3 million (28,352 mts).


5. (SBU) WFP informs that Deputy Executive Director Jean-
Jacques Graisse will visit Pyongyang, Seoul and Tokyo in
October.

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Comment from Ambassador Hall
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6. (SBU) Now that Japan has moved forward to partially fill
WFP's annual appeal (towards which they have not contributed
since 2001),finalization of a U.S. commitment to bring WFP
within range of its 2004 emergency operation (EMOP) target
of 484,445 mts is strongly encouraged. Moreover, the

MSI9615 SECURITY ERROR
NORTH KOREA 2004 EMERGENCY OPERATION

Republic of Korea's Embassy here in Rome has called our US
Mission regarding U.S. intentions. Reportedly they are
considering a 100,000 metric ton in-kind maize contribution
to WFP (similar to last year). In my view, U.S. leadership
could play an important catalytic role here. Hall


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2004ROME02854 - Classification: UNCLASSIFIED