AMBASSADOR'S LUNCH WITH VFM YACHI: MAR 2, 2006

C O N F I D E N T I A L SECTION 01 OF 05 TOKYO 001159

SIPDIS

SIPDIS

E.O. 12958: DECL: 03/02/2016
TAGS: KNNP ECON ETRD EAGR PARM PREL CH JA
SUBJECT: AMBASSADOR'S LUNCH WITH VFM YACHI: MAR 2, 2006

Classified By: AMBASSADOR J. THOMAS SCHEIFFER. REASONS; 1.4 (b),(d).


1. (C) SUMMARY: During a working lunch with VFM Yachi on
March 2nd, the Ambassador:
-- Warned a realistic solution on beef must be found soon.
-- Expressed concern over leaks of the KEEN EDGE exercise.
-- Praised PM Koizumi's warning to Iranian FM Mottaki.
-- Urged Japan to participate in a PRT in Iraq.
-- Welcomed Japan's decision to delay suit on land/lease
issue.
-- Informed Yachi of his forthcoming visit to Niigata City on
March 16.

VFM Yachi:
-- Said PM Koizumi looked forward to visiting the U.S. in
June.
-- Claimed recent bone-in beef shipment "cut the legs out
from under" MOFA.
-- Stated Iran posed a "difficult dilemma" for Japan.
-- Said MOFA was exploring civilian PRT participation.
-- Welcomed the Ambassador's trip to Niigata to meet with
abductee families.
-- Repeated his request that SE Leftkowitz visit Japan.
-- Requested Taiwan and Central Asia be added to the
bilateral talks in Sydney.
-- Agreed Japan would support Guatemala for GRULAC seat.
-- Said he is pressing to open a Japanese embassy in
Lithuania.

Yachi also reported he will travel to Washington March 14-18,
that FM Aso will visit there the last week of April, and that
PM Koizumi agrees with the White House proposal that he visit
Washington at the end of June (and hopes also to go to
Memphis). END SUMMARY

Reopening the Beef Market
--------------


2. (C) At the start of their March 2, 2006 working lunch at
the EMR, Vice Foreign Minister Shintaro Yachi informed the
Ambassador that he would be traveling to Washington March
14-18. "You will get an earful on beef," the Ambassador
predicted, stressing to Yachi that "What the Japanese
government needs to realize is that we can't go through
another two-year process to re-open the market." We must
narrow the issues, target the concerns and resolve the issue
soon, Ambassador Schieffer emphasized.


3. (C) The Japanese government will soon respond to the U.S.
report on the January shipment of bone-in veal by asking
questions, Yachi replied. He added that Japan welcomes an
experts' visit and is willing to work together with the
United States to "persuade the Japanese people" it is safe to
re-open the market. "Frankly speaking, this incident has cut
the legs out from under us," Yachi explained, asking that
Washington "help the Japanese recover" by seriously
addressing the questions Japan will raise. It is a problem
of confidence not of safety, Yachi claimed. While the
situation is bad, it would be even more disastrous if another
incident occurred after the market was re-opened.


4. (C) The Ambassador acknowledged that the January incident
was a mistake, and expressed understanding for the situation
the Japanese government now faces, but strongly pointed out
that no inspection system is perfect. It is "unrealistic"
for the Japanese government to insist on that kind of
impossible guarantee, he said. "We don't hold Japan to such
a standard on its imports, and it is unrealistic for Japan to
hold the United States to such a standard of perfection." He
warned Yachi of the growing anger in Congress. "We are
talking about three boxes of veal chops," the Ambassador
said, pointing out that Japan could have simply de-listed the
errant company. What we don't hear are Japanese officials
calmly pointing out the facts of the situation, the
Ambassador added. Japanese leaders need to begin expressing
some satisfaction with our sincere efforts to resolve this
issue, the Ambassador stressed, in order to lay the predicate
for exiting this political minefield.

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Trilateral Strategic Dialogue (TSD) in Sydney
--------------


5. (C) North America Affairs Bureau Director General Kawai,
who also attended the lunch, informed the Ambassador that FM
Aso will arrive in Sydney at approximately 9:00 a.m. on March
18 to participate in the TSD. Yachi said his minister would
be prepared to discuss the regional situation in East Asia
and the rise of China at the U.S.-Japan Strategic Dialogue
that morning, but stressed he felt it was also important to
discuss Taiwan, a subject he said Tokyo is viewing with
"increasing concern."


6. (C) VFM Yachi also requested a discussion of Central Asia
be included in the bilateral. According to Yachi, many
Central Asian states are concerned about the rising influence
of Russia and China, while the United States appears to be
reducing its involvement in parts of the region. The
European Union is very interested in Central Asia and would
like to consult with us on ways to strengthen our ties, Yachi
said, adding that he thinks this would be an interesting
topic for the Secretary and FM Aso to discuss. The
Ambassador agreed and took that opportunity to encourage
increased Japanese interaction with NATO.


7. (C) Following on his request to add additional items to
the Strategic Dialogue, Yachi further requested that the
bilateral be lengthened to "at least one hour," instead of
the 45 minutes that has been notionally suggested. As
justification, he pointed out that FM Aso will want to
comment on relations with ASEAN, India, and Russia as
important components of Japan's overall strategy for dealing
with the rise of China. Furthermore, he added with a wry
laugh, Japan is much more interested in the bilateral
strategic dialogue with the United States than it is with the
trilateral discussion.

Force Transformation (DPRI)
--------------


8. (C) Addressing a list of DPRI issues, DG Kawai started by
reporting the "good news" that on March 1st the Mayor of the
Town of Yu had accepted the plan for redeployment of the
Atsugi based carrier-born aircraft to Iwakuni Airbase. That
sends a good signal to the people of Iwakuni, Kawai observed.
There would be a meeting later in the day at the Prime
Minister's office to discuss the financial issues related to
the transfer of Marines from Okinawa to Guam. The people in
Yokosuka were closely watching Senator Warner's bill
regarding retirement of the USS John F. Kennedy, because if
it is truly retired, the Mayor of Yokosuka can tell his
constituents there is no other non-nuclear carrier available
to replace the USS Kitty Hawk. MOFA is currently preparing a
document that explores the safety aspects of hosting a
nuclear carrier, Kawai said, with completion of that report
expected to take "several more weeks."


9. (C) The Ambassador responded that the Prime Minister's
statement that basing the nuclear carrier in Japan was "in
the interest of Japan" had sent a very positive message that
indicated the maturing of our alliance, and the equal
partnership upon which it is based. Statements like that
also greatly enhance the PM's relationship with Washington,
the Ambassador pointed out.

KEEN EDGE Leak
--------------


10. (C) The Ambassador expressed serious concern over
Japanese government leaks to the media regarding the content
of the KEEN EDGE joint U.S.-Japan military gaming exercise.
The exercise explored scenarios including conflict with the
PRC and North Korea. Ambassador Schieffer acknowledged that
leaks are common in politics, but stressed that in matters of
operational security they are very serious, do not serve U.S.
interests, and work against Japan's own interest as well.
Such a leak "throws cold water" in the faces of all those who

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would like to increase security cooperation with Japan, he
stated. "I agree 100 percent," Yachi replied, "That leak was
a terrible thing."

The Middle East
--------------


11. (C) Turning to the Middle East, the Ambassador and VFM
Yachi briefly discussed the situation in Iran, Iraq, and
Palestine. On Iran, the Ambassador praised PM Koizumi for
the "strong point" he made to visiting Iranian Foreign
Minister Mottaki earlier in the week when he warned Mottaki
that Japan had become isolated in the 1930s and 40s, with
disastrous consequences. Yachi replied that Iran posed a
"difficult dilemma" for Japan and added that he too had made
the same argument to the Iranians about the dangers of
becoming isolated from the international community.


12. (C) The Ambassador strongly urged Japanese participation
in a PRT in Iraq. Yachi replied that he was "not
optimistic," but claimed MOFA was exploring possibly sending
"some experts" to aid the work of an appropriate PRT. The
Vice Foreign Minister made it clear, however, that any
Japanese contingent would not include SDF forces. He
requested a confidential discussion be held between Tokyo and
Washington to explore that possibility and urged the United
States offer up some ideas and expert-level consultations so
MOFA would have something specific to advocate.

Chancery Lease Issue
--------------


13. (C) The Ambassador thanked Yachi for the Japanese
government's decision to delay filing a lawsuit on the
Chancery land issue until March 28. He believed we have made
good progress on the issue and that the matter will
eventually be resolved. He cautioned, however, that Japan
may be expecting more with regard to the sovereignty issue
than is likely to be worked out in the end. Yachi pledged
the best efforts of his government and said Tokyo awaits
Washington's response.

Ambassador's Visit to Niigata
--------------


14. (C) The Ambassador informed Yachi of his intention to
fulfill a promise he had previously made to the families of
the abductees that he would visit some abduction sites in
Niigata City. He asked Yachi if the visit -- which he
explained would take place on March 16, in conjunction with a
port call in Niigata by the USS Gary - posed any problems for
the Japanese government. "No," Yachi replied, "We want you
to go." Yachi then repeated an earlier request by Tokyo that
Special Envoy Leftkowitz pay a visit to Japan as soon as
possible to highlight our shared concern for the abysmal
human rights situation in the DPRK.

Japan-China Relations
--------------


15. (C) During the 15 hours of meetings he had held with
Chinese VFM Dai Bingguo in February the Chinese side had been
intent on seeking assurance the next Japanese prime minister
will not go to Yasukuni Shrine, Yachi recounted. Dai told
Yachi that he should not "ignore the hearts of 1.3 billion
people." The two sides agreed their relationship should be
"forward looking" Yachi said, but added that Dai had been
very insistent about Yasukuni. Asked by the Ambassador
whether the Chinese had acknowledged in any way Koizumi's
attempt to lower the profile of his visits to the shrine,
Yachi replied that "for Beijing the issue is whether the
Prime Minister goes or not, period." Yachi offered his
impression that the PRC was reacting with "moderation" to
what he admitted were "vocal statements" by possible Koizumi
successor Taro Aso. "And they are so far silent on Abe," he
added. He also noted that Beijing treats Japanese officials
very differently depending on their perceived stance towards
China, citing the good treatment received by METI Minister

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Nikai in Beijing and the meeting cancellations and cold
shoulder meted out to LDP Leader Hidenao Nakagawa during his
visit to the PRC. "It's a kind of discrimination policy,"
Yachi joked. Yachi said he pointed out to the Chinese that
both Abe and Aso had very carefully avoided saying that they
definitely would go to Yasukuni if they became PM, and warned
the Chinese they should avoid telling Koizumi's successor
that he could not go.
Taiwan
--------------


16. (C) During his meetings with Dai, as well as in a phone
call from Chinese Ambassador to Japan Wang Yi on March 1, the
Chinese had taken great pains to convey their dissatisfaction
with President Chen Shui-bian's announcement that he would
"freeze" the National Unification Council, Yachi continued.
They had also stated their firm opposition to former
President Lee Teng-hui's proposed May visit to Japan. Asked
for his views on both matters, Yachi replied that he did not
agree with Chen's move and that Japan did not want to see any
actions taken that would worsen the security situation in the
Taiwan Strait. As for the Lee visit, he said the Japanese
government would issue him a visa so long as he is traveling
to Japan as a private citizen and does not engage in meetings
with Japanese officials.

UNSC Reform/GRULAC Seat
--------------


17. (C) Japan desires a positive U.S. response to the Option
C proposal for UNSC reform, Yachi stressed. He and the
Ambassador agreed that the March 18 Trilateral Strategic
Dialogue provides a good opportunity for the Secretary and FM
Aso to further discuss the issue. Yachi said Japan would
join the United States in supporting Guatemala's bid over
Venezuela to gain the Group of Latin American Countries
(GRULAC) seat on the UNSC for 2007-2008. "Foreign Minister
Aso has already conveyed Japan's pledge of support to the
Guatemalan government," he said.

Mutual Legal Assistance Treaty (MLAT)
--------------


18. (C) At Yachi's request, the Ambassador updated him on
the status of Senate action on the MLAT, pointing out that he
could not predict when the Senate Foreign Relations Committee
might refer it for consideration by the full Senate. The
Ambassador told Yachi we were aware of no problem with the
MLAT itself, but since it is queued up with other legislation
before the committee we can't say exactly when Senate passage
can be expected. Yachi indicated the Japanese Embassy would
likely check on the status of the treaty with Senator Lugar's
office in the near future because Japan is considering
submitting a Japan-ROK MLAT to the Diet in May. When it
does, MOFA will be asked by the Diet about the status of the
U.S.-Japan MLAT, so it would be helpful to know its status
and even better if it had passed the Senate by then, Yachi
explained.

Upcoming High Level Visits
--------------


19. (C) In addition to his own March 14-18 visit to
Washington, Yachi advised that FM Aso plans to travel to
Washington the last week of April. That trip will be
followed by an Aso visit during the Japanese Golden Week
holiday to Brussels and Latvia. Yachi added that he is also
recommending Japan establish an embassy in Lithuania, where
they have only a small representative office at present. In
response to the Ambassador's earlier encouragement for Japan
to build its relations with NATO, Yachi explained that FM Aso
will deliver a speech on the subject during his visit to
Brussels. His stop in Latvia is intended to demonstrate
Japan's desire to build closer relations with the Baltic
states, 'with Russia in mind,' Yachi explained.


20. (C) Finally, Yachi stated that the June 29 date proposed
by the White House for the start of PM Koizumi's visit to the

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United States was "fine with the PM." Noting that the White
House was preparing a schedule of meetings for June 30th,
Yachi added that the Prime Minister was "very enthusiastic
about also visiting Memphis," and that the Japanese
government was hopeful that side trip would be included in
the final arrangements. "I think it's a great idea and I
hope he does get to go," the Ambassador agreed, commenting
that the Prime Minister had once told him that he knows more
about Elvis Presley than most Americans.
SCHIEFFER