S/P DIRECTOR KRASNER'S MEETING WITH VICE FOREIGN

1. (C) Summary: During a March 2 meeting with visiting S/P
Director Stephen D. Krasner, VFM Yachi said Japan supported
the inclusion of Australia, New Zealand and India in the East
Asia Summit and explained limitations to support from
individual East Asian countries for greater U.S. involvement
in that forum. He underscored the importance of the
U.S.-Japan alliance in developing an appropriate approach to
an emerging China and in influencing China to play a
productive role vis-a-vis North Korea. End Summary.

East Asia Summit


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2. (C) In a March 2 meeting, visiting S/P Director Stephen


D. Krasner and S/P Member Evan Feigenbaum, accompanied by
POLMIN, solicited Vice Foreign Minister Shotaro Yachi's views
on a wide range of issues. On the East Asia Summit, proposed
for December this year, VFM Yachi relayed Japan's desire to
see Australia, New Zealand and India included. He
acknowledged, however, that some East Asian nations,
including China and Malaysia, just want the ASEAN Plus 3 to
participate. While some ASEAN countries might view the
United States as balancing their Chinese neighbor, support
for U.S. involvement was not all that widespread. VFM Yachi
explained that Japan wants the summit to focus on economic
and possibly cultural issues rather than security questions.
VFM Yachi and Krasner reviewed the stances of various ASEAN
countries on the issue of participation. Some ASEAN
countries, like Singapore and to a lesser extent Indonesia
and possibly Thailand, might be more sympathetic to more
active U.S. involvement. Nonetheless, this sympathy would
not translate into support for anything more than "part
membership" for the United States this year, he suggested.

China


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3. (C) Asked for his views on a productive approach to
dealing with the emergence of China, VFM Yachi said that with
significant markers like the Beijing Olympics and Shanghai
Expo, China was at a crossroads, which would determine
whether it developed into a responsible, stable power or an
expansionist one. Whereas Japan in the 1960s and 1970s
depended on U.S. security guarantees while it pursued
economic development, China is currently focusing on economic
development and is building up its military. China, however,
faces enormous challenges managing its growth. It is
important to maintain a strong U.S.-Japan alliance as China
faces these challenges, VFM Yachi underscored. While the
United States is an indispensable ally to Japan and is the
world's only superpower, the United States cannot do
everything alone. Japan, he said, can be a valuable ally to
the United States in the Pacific.

North Korea


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4. (C) Addressing the effect of the U.S.-Japan relationship
on China's handling of North Korea, VFM Yachi stated that the
Chinese are quite frustrated by the North Korean issue. The
United States plays a key role in encouraging China to be
more productive in its handling of North Korea. China is
only likely to heed Japan to the extent that it is speaking
in unison with the United States.



5. (U) S/P Director Krasner cleared this message.
MICHALAK