Identifier
Created
Classification
Origin
06TOKYO1691
2006-03-30 07:52:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Tokyo
Cable title:  

DUSTR BHATIA CUTS STRAIGHT TO THE BEEF

Tags:  ETRD PREL ECON JA 
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RUEHKL/AMEMBASSY KUALA LUMPUR 1641
RUEHFK/AMCONSUL FUKUOKA 5413
RUEHNAG/AMCONSUL NAGOYA 5420
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RUEHOK/AMCONSUL OSAKA KOBE 8570
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RUEHBS/USEU BRUSSELS
RUCPDOC/USDOC WASHDC
RUEHGV/USMISSION GENEVA 2802
UNCLAS SECTION 01 OF 02 TOKYO 001691 

SIPDIS

SENSITIVE
SIPDIS

DEPT PLEASE PASS AUSTR CUTLER
PLEASE PASS USDA FOR U/S PENN
PLEASE PASS FAS FOR TERPSTRA
PARIS FOR USOECD
GENEVA FOR USTR

E.O. 12958: N/A
TAGS: ETRD PREL ECON JA
SUBJECT: DUSTR BHATIA CUTS STRAIGHT TO THE BEEF


TOKYO 00001691 001.2 OF 002


SESITIVE BUT UNCLASSIFIED -- PLEASE PROTECT ACCORDINGLY

Summary
-------

UNCLAS SECTION 01 OF 02 TOKYO 001691

SIPDIS

SENSITIVE
SIPDIS

DEPT PLEASE PASS AUSTR CUTLER
PLEASE PASS USDA FOR U/S PENN
PLEASE PASS FAS FOR TERPSTRA
PARIS FOR USOECD
GENEVA FOR USTR

E.O. 12958: N/A
TAGS: ETRD PREL ECON JA
SUBJECT: DUSTR BHATIA CUTS STRAIGHT TO THE BEEF


TOKYO 00001691 001.2 OF 002


SESITIVE BUT UNCLASSIFIED -- PLEASE PROTECT ACCORDINGLY

Summary
--------------


1. (SBU) The United States is looking for an early
resumption of beef imports to Japan. That was the message
Deputy U.S. Trade Representative Karan Bhatia conveyed during
March 20 meetings in Tokyo. While underscoring that U.S.
beef is safe, in separate meetings he told Vice Ministers at
the Foreign, Trade, and Agriculture ministries, and the
Assistant Cabinet Chief Secretary in the Prime Minister's
office that the political climate in Washington was growing
more difficult. If the beef ban were still in place in
mid-April when Congress returns from recess, the issue could
severely affect the bilateral relationship. DUSTR Bhatia
also delivered the same message to Parliamentary Vice
Minister Shiozaki. The Japanese reply was mixed, with Deputy
Foreign Minister Mitoji Yabunaka stressing that the Japanese
understand the politics and want the problem solved and out
of the way, while Vice Agriculture Minister Hiroyuki
Kinoshita pointed to the need for caution. End Summary.

Deputy Foreign Minister Wants Quick Resolution
-------------- -


2. (SBU) In Tokyo to cover a range of topics with his
Japanese counterparts (septel),DUSTR Karan Bhatia urged the
GOJ to move as quickly as possible to end the ban on U.S.
beef that was re-imposed in January. He told senior GOJ
officials that the problem was extremely sensitive in
Washington. The Congressional drums were beating "louder and
louder," and if beef were not resolved soon the issue would
become a big impediment to better economic cooperation.
Deputy Foreign Minister Yabunaka told Bhatia that the Koizumi
Government well understood the dangers of letting this
problem drag on. The government was very much engaged in
trying to find a solution. A senior-level discussion on the
topic had taken place at the Prime Minister's office earlier
on March 20 and participants understood the urgency of the
matter.


3. (SBU) Yabunaka pointed to a meeting of experts that the
two sides have scheduled for March 28 and said the climate to
make more progress should only get better in coming weeks. A
big hindrance has been the Diet's consideration of the annual
budget, but this issue should melt away after it is passed by
the upper house, presumably on March 27. The Prime Minister,
Yabunaka said, was well aware that the beef ban could erode
the good relations that Japan enjoys with the United States.
Koizumi, however, must be very careful to navigate the
domestic political landmines in Japan over the issue.
Koizumi "doesn't want to antagonize housewives," the Vice
Foreign Minister quipped. Yabunaka claimed to have good
relations with Agriculture Minister Nakagawa, and has
stressed with him the importance of moving in a timely way to
solve the issue. Nakagawa gets it, he suggested.

Agriculture Ministry Urges Cautious Approach
--------------


4. (SBU) At the Agriculture Ministry, Vice Minister
Kinoshita was very cordial but, in contrast to Yabunaka, did
not try to look forward leaning in identifying a road map for
lifting the ban more quickly. The procedures the U.S. put in
place last fall to resume trade with Japan did not work, he
noted. The two sides first need to sort out what went wrong.
Japan has posed for the U.S. Agriculture Department
questions concerning how in January banned beef products
entered Japan in violation of the bilateral agreement. The
U.S. replies were only just delivered to the GOJ on March 18
and Kinoshita said he had not had a chance to review them.
When Bhatia pressed the Vice Minister on the need for a clear
time line for reopening the market, Kinoshita pushed back.
He hoped next week's experts level meeting, set for Tokyo,

TOKYO 00001691 002.2 OF 002


would be a success, but reminded Bhatia what Agriculture
Minister Nakagawa had said to the Diet recently: haste makes
waste.

Koizumi's Advisor
--------------


5. (SBU) At the Prime Minister's Office, Assistant Chief
Cabinet Secretary Hiroyasu Ando reviewed with Ambassador
Bhatia the major bilateral issues between the United States
and Japan, including beef. The Prime Minister understood
that the beef ban was hurting the relationship. Ando added
that it was important now to keep "consumer confidence" in
mind as the two sides work out this issue. Bhatia stressed
the importance of not letting beef linger as a problem
because it would get in the way of the broader relationship.
The two sides need to work hard in coming weeks to resolve
the issue quickly.
DONOVAN