Identifier
Created
Classification
Origin
06BAGHDAD3027
2006-08-20 16:24:00
CONFIDENTIAL
Embassy Baghdad
Cable title:  

JAPANESE AMBASSADOR: NO PLEDGE YET FOR

Tags:  PGOV PREL JA IZ 
pdf how-to read a cable
VZCZCXRO5353
PP RUEHBC RUEHDE RUEHIHL RUEHKUK
DE RUEHGB #3027/01 2321624
ZNY CCCCC ZZH
P 201624Z AUG 06
FM AMEMBASSY BAGHDAD
TO RUEHC/SECSTATE WASHDC PRIORITY 6360
INFO RUCNRAQ/IRAQ COLLECTIVE PRIORITY
RUEHKO/AMEMBASSY TOKYO PRIORITY 0050
RUEKJCS/SECDEF WASHINGTON DC PRIORITY
RUCNDT/USMISSION USUN NEW YORK PRIORITY 0512
RHEHAAA/WHITE HOUSE WASHINGTON DC//NSC// PRIORITY
C O N F I D E N T I A L SECTION 01 OF 02 BAGHDAD 003027 

SIPDIS

SIPDIS

E.O. 12958: DECL: 08/19/2016
TAGS: PGOV PREL JA IZ
SUBJECT: JAPANESE AMBASSADOR: NO PLEDGE YET FOR
INTERNATIONAL COMPACT

REF: A. TOKYO 4295


B. TOKYO 4507

Classified By: Ambassador Zalmay Khalilzad for Reasons 1.4 (b) and (d).

C O N F I D E N T I A L SECTION 01 OF 02 BAGHDAD 003027

SIPDIS

SIPDIS

E.O. 12958: DECL: 08/19/2016
TAGS: PGOV PREL JA IZ
SUBJECT: JAPANESE AMBASSADOR: NO PLEDGE YET FOR
INTERNATIONAL COMPACT

REF: A. TOKYO 4295


B. TOKYO 4507

Classified By: Ambassador Zalmay Khalilzad for Reasons 1.4 (b) and (d).


1. (C) In an August 13 meeting with PolCouns and a subsequent
meeting the same day with the Ambassador and the DCM,
Japanese Ambassador to Iraq Hisao Yamaguchi said that Japan
is not currently willing to commit new money for Iraq
reconstruction through the International Compact. Yamaguchi
reported on the recent visit of Japanese Foreign Minister
Taro Aso to Baghdad, during which Foreign Minister Zebari
asked Japan to commit new funds to Iraq reconstruction.
Yamaguchi asked whether the USG is planning to commit new
funds to Iraq reconstruction as part of the International
Compact, and noted that the USG has not formally asked Japan
to make a new pledge. He suggested that a telephone call
between FM Aso and Secretary Rice could be helpful although
he asked not to be cited as the source of this suggestion.
He said that Japan is having problems getting its current
loan funding processed through the GOI. On the subject of
security, he said that from the Japanese point of view
demobilization of Iraqi militias is premature and needs to
await a political settlement. End summary.

--------------
Iraq Reconstruction -- We Already Gave
--------------


2. (C) Yamaguchi said that Japan has already committed US $5
billion to Iraq through the Madrid donors' conference. This
$5 billion is divided between a $1.5 billion grant and $3.5
billion loan. The Japanese are still spending the loan
portion of this pledge. Yamaguchi said that the GOJ supports
the International Compact (ref A). However, the GOJ wants to
focus its efforts on spending the money it has already
committed rather than making a new commitment. The Japanese
said that it will take at least another year to spend the
$3.5 billion in loan money given difficulties investing in
Iraqi projects. The Ambassador responded that the
International Compact is intended to cover a multi-year time
span, so the Japanese could see a new pledge as being a more
long-term commitment.


3. (C) Yamaguchi asked whether the USG will be making a new

commitment of funds as part of the International Compact.
The Ambassador responded that this issue has not yet been
decided, but his recommendation would be that we do so.
Yamaguchi indicated that if the USG made an additional
pledge, Japan might consider doing so too.


4. (C) Yamaguchi provided a read-out of Japanese Foreign
Minister Aso's one-day visit to Baghdad on August 3 -- the
first Japanese cabinet level visit to Iraq since the 2003
liberation (ref B). During the visit FM Aso met with both
Prime Minister Maliki and Foreign Minister Zebari. FM Zebari
asked FM Aso to speed up the disbursement of the $3.5 billion
in loan assistance. FM Zebari asked that Japan make an
additional pledge of new money as part of the International
Compact. Yamaguchi said that the GOJ wants to know if
Zebari's request for a new pledge was coming only from the
Iraqis or if it was also an American request. Yamaguchi said
that the USG has never formally asked the GOJ for an
additional pledge.

--------------
Possible Rice-Aso Telephone Call?
--------------


5. (C) Yamaguchi said that a telephone call between Secretary
Rice and Foreign Minister Aso could help encourage the
Japanese to consider an additional commitment to the
International Compact. Note: Ambassador Aso asked that he
not be mentioned as the source of this suggestion. End Note.

--------------
Problems with Spending Loan Funding
--------------


6. (C) Yamaguchi said that spending the $3.5 billion in loan
funding has not been easy. The Japanese currently have $800
million in Iraq projects in the pipeline, but getting the
loans approved and the money spent is difficult. He said
that Japan has proposals for construction of bridges, roads,
and power generation stations. Getting these projects
approved and implemented by the GOI, however, has been
problematic. The Ambassador replied that he would work with
the GOI to help expedite the process.

BAGHDAD 00003027 002 OF 002



--------------
Demobilizing Militias "Premature"
--------------


7. (C) On the subject of militias, Yamaguchi said that
demobilizing militias now would be premature without a
political agreement or reconciliation. He said that at
present militias play both a positive and negative role in
Iraq. The Ambassador responded that he would welcome a
dialogue on this subject between the US and Japanese experts
on militia demobilization. Yamaguchi added that at the
present time Japan does not want to take a leading role in
militia demobilization efforts. He explained that at this
time there is "no appetite" in Japan for taking on such a
challenge because the security situation in Iraq is still so
difficult.
KHALILZAD